Apple retains its crown as the world’s most valuable brand for the second year in a row, with a brand valuation of $880bn, and has proven resilient in the face of testing market conditions, justifying premium prices with positive perceptions, and proving that meaningful, different and salient brands are best placed to weather global economic disruption. Microsoft overtakes Amazon to join Google in the top three, with technology brands, once again, the most represented in the Top 100 and commanding the largest share of brand value. McDonald’s is the most valuable non-tech brand and Coca-Cola rejoins the Top 10.
“This year’s results – despite the fall in aggregate value – are, in fact, a continuation of the long-term growth trend for brands, which began following the global financial crisis of 2008 and continued up until the start of the pandemic in 2020. While the market has proved volatile and been greatly impacted by global macroeconomics, consumers’ view of brands has proved far more stable – the most valuable brands in the world remain as highly regarded as ever. The lessons for brand owners and marketers remain clear; effective marketing investment and long-term thinking are vital to your business’ growth prospects. Those brands consistently investing in establishing strong consumer connections are now much better placed to navigate the current volatile conditions and deliver a greater degree of resilience for their shareholders,” comments Martin Guerrieria, head of Kantar BrandZ.
The most valuable brands in the world have built powerful connections allowing them to create shareholder value faster, resist market downturns, and recover sooner from recessions. Brands with powerful connections have three essential qualities: they are Meaningful, Different, and Salient.
Pepsi’s brand value has soared 17% year-on-year, reaching a total value of $18.8bn and taking Pepsi back into the global ranking at No. 91. Defined by great advertising, the brand has grown its price premium positioning in the US while being considered a ‘value’ brand across the rest of the world. Coca-Cola (No.10) showed great resilience, increasing its brand value by 8% and breaking back into the Top 10 for the first time in seven years.
TikTok (No. 41) is still perceived as the second most disruptive brand in the Top 100, behind Tesla (No. 25). Tesla continues to be considered a true game-changer, ranking No.1 in the Automotive category, with a 2023 valuation of $67.7bn. Outside the Top 100, Ferrari makes its debut in the Top 10 Automotive brands with a valuation of $7.8bn, increasing demand and perceived value to consumers even through the most challenging market conditions. Emerging brands competing in the EV space, and which are likely to gain value in the future, include Polestar, Li Auto and Genesis.
Food & Beverage brands demonstrated the most resilience as an overall category, declining just 3% year-on-year. Doritos proved the value of its superior taste messaging, ranking No.19 in this category, with a brand value of $5.4bn – one of many brands in this year’s report that shows functional benefits can be the key to outperforming competitors.
Fast Food was the second-highest performing category. Brands that outperformed in this space include Burger King, Chick-Fil-A and Starbucks. Resilience in the industry is being fuelled by greater exposure and better experience. Burger King, for example, cut drive-thru times with menu simplification and digital boards and invested more heavily in brand communications. The brand has been rewarded with a 2023 value of $7.7bn, an increase of 8% compared to last year.
Luxury brands retained their allure even with steady, incremental price increases. Louis Vuitton is the only luxury brand in the global Top 10, rising two places to No. 8, with a brand value of $124.8bn. Dior is the fastest-growing brand in the category, increasing its brand value by 9% to $11.4bn. The category’s strong overall performance highlights the excellent job luxury brands are doing at leveraging their distinctive assets to drive higher demand and pricing power, despite economic challenges.
Guerrieria continued: “Brands need to continue investing in brand-building, product and market diversification to grow. This year’s results clearly show that, even in the current macroeconomic environment, it remains possible to find growth in any category and territory with the right strategy focused on establishing and maintaining strong connections with consumers. BrandZ analysis proves that perceived difference is a key predictor of share growth; promoting any sense of difference and making it more known and more relevant to consumers will boost brand value in the long-term.”
The Kantar BrandZ Most Valuable Global Brands 2023 report – including the Global Top 100 ranking and extensive analysis is available now via www.kantar.com/campaigns/brandz/global.
Kantar BrandZ is the global currency when assessing brand value, quantifying the contribution of brands to business’ financial performance. Kantar’s annual global and local brand valuation rankings combine rigorously analysed financial data, with extensive brand equity research. Since 1998, BrandZ has shared brand-building insights with business leaders based on interviews with 4.2 million consumers, for 20,000 brands in 54 markets. Discover more about Kantar BrandZ here.
The Kantar BrandZ Most Valuable Global Brands report is the most definitive and robust ranking available. The ability of any brand to power business growth relies on how it is perceived by customers. Grounded in consumer opinion, Kantar BrandZ analysis enables businesses to identify their brand’s strengths in the market and provides clear strategic guidance on how to boost value for the long-term. The brands ranked must meet these eligibility criteria: