Nestlé has long been a powerhouse in the food industry, holding on to its position as the world’s most valuable food brand with a brand value of $20.8 billion. However, according to a new report from Brand Finance, this value has declined by 7% year-on-year. The Brand Finance Food & Drink 2024 report highlights the shifting landscape of the food and beverage sector, which has seen an overall 4% decline in brand value this year, totaling around $268 billion. This decline can be attributed to consumers increasingly favoring smaller or private label brands over traditional giants like Nestlé.
In second place behind Nestlé is Lay’s, owned by PepsiCo, which has seen a 9% increase in brand value to $12.1 billion, overtaking Chinese brand Yili. Yili’s brand value has decreased by 6% to $11.6 billion. Other notable brands in the top ten include Tyson, Danone, Quaker, Kellogg’s, Mars Wrigley, Mengniu, and Doritos.
Savio D’Souza, valuation director at Brand Finance, notes that the food and beverage industry is undergoing a rapid transformation driven by evolving consumer preferences. While the decline in brand value presents a challenge, it also offers opportunities for innovation. Brands that can adapt to these changing trends by demonstrating a strong brand purpose and delivering exceptional consumer experiences will be the ones to thrive in this new landscape.
The report includes 100 food brands, with some notable movers being Healthy Choice and DiGiorno, both of which saw a 17% increase in brand value. These convenience food brands have successfully adapted to changing consumer preferences, according to Brand Finance. Viterra has recorded the largest brand value growth by percentage in the rankings, with a 37% increase to $1.1 billion.
Indian dairy company Amul has been named the world’s strongest food brand, with a brand strength index (BSI) score of 91 out of 100. This recognition highlights the brand’s ability to resonate with consumers and maintain a strong presence in the competitive food market.
Overall, the Brand Finance Food & Drink 2024 report sheds light on the dynamic nature of the food and beverage industry and the importance of brands adapting to evolving consumer preferences. As the sector continues to evolve, brands that can innovate, demonstrate purpose, and deliver exceptional experiences will be best positioned to succeed in this ever-changing landscape.