L'Oréal is the world’s most valuable cosmetics brand valued at $12 billion, survey

L'Oréal is the world’s most valuable cosmetics brand valued at $12 billion, survey

18-05-2023 20:49:46 | Door: Bob Koigi | Hits: 393 | Tags:


L'Oréal (brand value up 7% to US$12 billion) reigns supreme as the overall winner in the Brand Finance Cosmetics 50 ranking.

As one of the world’s most popular and well-known cosmetics brands, L’Oréal operates in over 150 countries and has a global portfolio of over 30 brands. In its analysis, Brand Finance has determined that the key measures of familiarity and consideration towards L’Oréal have increased.

This increase may be attributed to the company’s digital marketing strategies and enhanced online presence. By leveraging its enormous social media following, (over 10 million followers on Instagram and 438k+ followers on TikTok) the brand has enhanced its familiarity amongst younger consumers, producing visually appealing content that is often led by popular influencers. Further, L’Oréal also boasts an innovative and continually expanding product range, a key attribute identified in the investment pillar of its brand strength.

Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 50 most valuable and strongest Cosmetics brands are included in the annual Brand Finance Cosmetics 50 2023 ranking. 

Following the appointment of a new CEO in 2021, Nicolas Hieronimus, L’Oréal has also expanded its efforts in digital transformation and sustainability. In 2023, L'Oréal launched two new technology prototypes at CES 2023: HAPTA, a handheld computerised makeup applicator designed for people with limited hand and arm mobility, and L'Oréal Brow Magic, an electronic eyebrow makeup applicator that that enables users to achieve a personalised brow look within seconds.

Brand Finance has also ranked L’Oréal as having the highest Sustainability Perceptions Value, with an SPV of US$1.24 billion. In addition, L'Oréal has been recognised by Ethisphere as one of the world's most ethical companies for the 14th time. In recognition of his efforts to promote environmental responsibility, diversity, equity, and inclusion in the fragrance industry, the Fragrance Foundation will award Hieronimus with the Hall of Fame award in June 2023.

Annie Brown, Director of Brand Finance:  “L'Oréal has once again come out on top, and Hieronimus has an ambitious and strategic vision for the giant’s future. The L'Oréal brand must continue to prioritise innovation, sustainability and digital transformation as it continues to expand its influence across the globe in the coming years.”

Beauty meets sustainability: L'Oréal claims the throne with a Sustainability Perceptions Value of US$1.24 billion. 

As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. Brand Finance research suggests that the importance of sustainability is extremely high in Cosmetics relative to other sectors. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value,’ is then calculated for each brand.  

Given the increasing importance of sustainability in the perception of cosmetics companies, it is unsurprising that the world's largest cosmetics company has once again topped the rankings. Steps taken by the French giant towards sustainable innovation include promoting sustainable formulae in its products, producing environmentally friendly packaging, and reducing waste and carbon emissions across its operations.  

It should be emphasised that the brand’s position at the top of the SPV table is not an assessment of its overall sustainability performance, but rather indicates how much brand value it has tied up in sustainability perceptions. L'Oréal’s Sustainability Perception Score was also relatively high, at 4.64/5. While L’Oréal may not be perceived as the most sustainable brand compared to those with sustainability embedded in their core mission, (e.g., Botanical cosmetics company, Yves Rocher, scoring 5.87/10, and Natura, scoring 5.29/10) the company has made, and is perceived as making, significant strides towards a greener future.  

Yves Rocher has the highest Sustainability Perceptions Score, at 5.87/10 

Yves Rocher (Brand value down 9% to US$2.3 billion) has achieved the highest Sustainability Perceptions Score in the Cosmetics 50 2023 report, at 5.87/10. Since its founding, Yves Rocher has remained committed to its sustainability mission. Its efforts were solidified by the establishment of the Yves Rocher Foundation in 1991, which has successfully planted more than 100 million trees worldwide in 2023. 

Yves Rocher also champions a sustainable vision for the future, aiming to reduce its plastic consumption by 30% and use 100% recyclable plastics by 2030. More generally, Groupe Rocher is making strides towards a more sustainable future, aiming to reduce its greenhouse gas emissions by 75% in La Gacilly, its region of origin, by 2025. Since 2011, this process has been underway at five production sites. Thanks to a new heating system, Les Villes Geffs has been using 45% renewable energy since 2023. 

Today, the botanical brand continues to use natural and organic products and promote eco-friendly packaging, leading the industry in sustainable business practices. As it does so, it also sends a message to consumers that sustainability is not just a buzzword, but an essential practice for the future. 


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