Top 50 global cosmetics brands see 9% value decline, says Brand Finance

The total value of the world’s top 50 most valuable cosmetics brands has declined 9% from $137.5bn in 2020 to $124.8bn in 2021, according to brand valuation consultancy Brand Finance Cosmetics 50 2021 report.

Color cosmetics was the most negatively impacted category, recording an average brand value decline of 15%. Multi-level marketing brands, like Avon (brand value down 24%) and Oriflame (down 1%), faced a 12% drop in brand value on average. The sector’s largest brands in haircare, razors and fragrance have experienced an average brand value drop of 10%.

Despite the declines, the cosmetics sector has the highest reputation of all fields globally, according to Brand Finance’s Global Brand Equity Monitor, only matched by the food sector. The consultancy says a strong reputation, and therefore strong brand, will position the field for recovery in the coming year.

L’Oréal maintains top spot

L’Oréal ranks as the world’s most valuable cosmetics brand for the second consecutive year, despite recording a 13% brand value loss to $10.2bn. The decrease is due largely to the brand’s financial outlook dipping.

L’Oréal and L’Oréal Paris brands’ reputation among consumers is significantly lower outside of Europe and North America, particularly in countries like India, China and Japan, according to Brand Finance’s global market research.

Nonetheless, L’Oréal remains a cut above the rest, says Brand Finance, thanks to remaining relevant through product innovations and fresh marketing.

Yves Rocher see growth

French brand Yves Rocher is the fastest-growing brand in this year’s ranking, with a 71% brand value increase, jumping eight spots from 28th to 20th. Brand Finance says the brand is rebounding following a sharp decline in brand value in recent years due to the decision to pull out of the UK.

Meanwhile, new entrants Fresh (LVMH) and The Body Shop (Natura) are the second- and third-fastest growing brands, up 53% and 22%, respectively.

Number 36 in the ranking, Fresh benefits from the combination of LVMH’s backing, claims Brand Finance.

The Body Shop entered the ranking in 49th position. The brand’s e-commerce sales were solid, says the consultancy, which more than compensated for sales lost in stores, which number at 3,000 in more than 70 countries.

Natura is sector’s strongest

In addition to measuring overall brand value, Brand Finance evaluates the strength of brands, based on marketing investment, customer familiarity, staff satisfaction, and corporate reputation. According to these criteria, Natura (up 19% to $1.7 billion) is the world’s strongest cosmetics brand, with a Brand Strength Index (BSI) score of 86.7 out of 100 and a corresponding AAA brand strength rating.

Natura is perceived to be an extremely strong brand across Brazil and South America according to the consultancy’s Global Brand Equity Monitor research. Although less known outside the region, its offer remains popular internationally thanks to the rise in demand for natural brands.

Brand Finance notes that Natura was able to insulate itself from the pandemic’s negative impact thanks to its diverse offering, which includes bath, fragrance, body and make-up.

The brand was also bolstered by the success of its parent company Natura &Co which scores well across corporate brand measures including governance, sustainability and employee appeal.

Each year Brand Finance evaluates 5,000 of the world’s biggest brands. The world’s top 50 most valuable cosmetics brands are included in the Brand Finance Cosmetics 50 2021 report.