BASF (brand value up 15% to US$8.3 billion) is leading the chemicals industry as chemicals brands across the world return to growth after the widespread disruption of the COVID-19 pandemic, according to a new report from leading brand valuation consultancy, Brand Finance. The chemicals industry suffered big losses in brand value during the pandemic, but with big restrictions on economic activity unlikely to be reintroduced in the Western world, most top brands are now above pre-pandemic valuations.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest brands in the chemicals industry are included in the annual Brand Finance Chemicals 25 2022 ranking.
BASF retains top position as the world’s most valuable chemicals brand, valued at US$8.3 billion
BASF’s brand value growth of 15% is largely attributed to improved revenue forecasts and a reduction in the weighted average cost of capital for the firm, creating further investment opportunities for the German brand. With increased demand for recycling and environmentally sensitive services, the BASF brand is well positioned to take advantage of the changing market conditions. In particular, this potential will be demonstrated with the forthcoming development of a significant joint-venture (with fellow German company Heraeus) in China to recycle automotive catalysts.
This potential for further growth will offset BASF’s significant costs from the Russian invasion of Ukraine, including the loss of significant assets with Russian and Ukrainian connections. Further, the company’s investments in the Nord Stream 2 gas pipeline create further risks of tarnishing the BASF brand. These issues are correlated with BASF losing its crown as the strongest chemicals brand in the world to DuPont.
The COVID-19 pandemic brought many restrictions across the world which had very big and direct impacts on brand values in the chemicals industry. As the world looks to a post-COVID future, chemical industry brands, led by BASF, are benefiting from strong demand for their products. Brand values have grown this year and are now largely above pre-pandemic levels.
David Haigh, Chairman and CEO, Brand Finance
DuPont becomes strongest chemicals brand in the world with AAA brand rating, despite fall in value
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.
DuPont (brand value down 6% to US$1.9 billion) is the strongest chemicals brand in the world with a Brand Strength Index (BSI) of 85.2 out of 100 and a corresponding AAA brand rating. The American brand has achieved a 5.2 point increase in brand strength, and in doing so, has jumped three ranking places amongst chemicals brand to take the crown for strongest chemicals brand.
In previous years, DuPont’s brand strength was subdued by various environmental and employee disputes with associated litigation around the safe and proper disposal of chemicals. However, an increased focus on corporate and social responsibility is improving the brand’s reputation amongst key stakeholders in the industry and communities where it operates.
Rongsheng Petrochemical jumps two ranking places with remarkable 43% growth in brand value
Rongsheng Petrochemical (brand value up 43% to US$2.3 billion) achieved very strong growth this year, rising two places in the chemicals ranking and jumping from 10th to 8th place amongst global chemicals brands. The Chinese brand owns various globally significant facilities, including an integrated refining-petrochemical complex with the refining capacity of 40 million tons per annum.
As the world’s largest producer of various chemicals, the brand value of this giant Chinese brand is growing in connection with increased research and development of clean technologies, while its world-leading refining-petrochemical complex recovers and purifies carbon dioxide from the plants for use as feedstock to produce downstream chemical products (polycarbonates).
More broadly, the brand is likely to become the largest polycarbonates producer in China this year, and the brand is also the largest supplier of solar-grade EVA for the photovoltaic industry. This creates further opportunities to grow and develop its brand in coming years as demand for such products increases.
UK’s INEOS is fastest growing chemicals brand globally with new effort to increase public profile
For many years, INEOS has been one of the largest companies in the UK but given the nature of its operations has remained relatively unknown to the public at large.
Over the last few years, CEO Jim Ratcliffe has focused on the importance of building a brand to provide a metaphorical strategic compass for the direction of the company internally, while also benefiting from the obvious external rewards of a strong reputation. As a result, the brand has increased 60% in value to US$1.5 billion and is a new entrant to the Top 25 rankings as the 17th most valuable chemicals brand globally.
Sailing, cycling, and now Formula 1 partnerships have not only put the brand on the map for many, but shxow a tangible manifestation to the public of Jim Ratcliffe’s desired brand characteristics for INEOS. It is an excellent example of how companies can use the associations of sports partnerships to accelerate themselves into the limelight.
David Haigh, Chairman and CEO, Brand Finance