Microsoft overtakes Amazon to join Google in the top three
McDonald’s is the most valuable non-tech brand; Coca-Cola rejoins the Top 10
Apple retains its crown as the world’s most valuable brand, for the second year in a row, in the Kantar BrandZ Most Valuable Global Brands Report 2023. The latest ranking shows that the total brand value of the world’s top 100 brands now stands at $6.9 trillion for 2023. Despite a 20% drop in the overall index vs 2022, the Kantar BrandZ Top 100 retains its long-term growth trajectory, posting 47% growth compared to the pre-COVID (2019) level.
With a brand valuation of $880bn, Apple 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. Google and Microsoft complete the top three, with technology brands, once again, the most represented in the Top 100 and commanding the largest share of brand value.
Martin Guerrieria, Head of Kantar BrandZ, says “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”.
Key highlights from the 2023 report include:
16 brands grew in brand value across the Top 100 – with Airtel (No.76; +24% and Pepsi (No.91; +17%) achieving the highest brand value growth vs 2022.
Nine brands returned to the Top 100 – including Colgate (No.95), Sony (No.99) and Pampers (No.100).
Two new Chinese brands joined the Top 100 ranking for the first time – Shein at No.70 and Nongfu Spring at No.81.
The Luxury, Fast Food and Food & Beverages categories proved to be the most resilient to market fluctuations.
Brands improving their ability to justify a higher price than competitors, based on the strength of their equity with consumers, grew at twice the rate – adding 67% to their brand value over the last four years.
Sustainability remains an untapped opportunity for brands – only 2% of the most valuable global brands are perceived as ‘leading’ in this area.
2023 success stories
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”.
For an overarching view of a brand’s performance, Kantar has launched a new, free interactive tool using BrandZ’s wealth of data. BrandSnapshot powered by BrandZ delivers intelligence on 10,000 brands in more than 40 markets, offering a quick read on a brand’s performance in a category.