This year, Sweden’s most valuable and strongest brands have shown sustained growth, with an almost 5% increase in aggregate brand value, reaching SEK1.25 trillion. While growth is slower than that of 2023, it highlights the resilience of Swedish brands and the ongoing recovery of brands in the post-pandemic era. There are no dropouts or new entrants in this year’s ranking, a reflection of the stability of the Swedish 50.
Aerospace & Defence leads as the fastest growing industry in the ranking, with aggregate brand value up 32% amid growing geopolitical tensions. Insurance follows with a 25% increase, and Automobiles with 23%. On the other hand, consumer-facing sectors like Cosmetics & Personal care (down 23%) and Apparel (down 9%) have seen declines in terms of overall brand value. This is due to reduced private consumption, stemming from a higher cost of living and consumer cutbacks on non-essentials, reflecting a wider global trend.
Anna Brolin, Managing Director, Brand Finance Nordics, commented:
“This year, we have seen significant shifts in the top 10 strongest Swedish brands, with none the previous year’s brands maintaining their position for 2024. This highlights the fierce competition among Sweden’s strongest brands, especially as smaller brands make progress and climb the Brand Strength Index (BSI) ranking. In response to this dynamic landscape, it is vital that Sweden’s leading brands continue to proactively seek ways to enhance their brand strength and impact.”
A decade on top: IKEA is Sweden’s most valuable brand for 10th consecutive year
IKEA (brand value up 4.7% to SEK175.1 billion) remains Sweden’s most valuable brand, topping the ranking for the tenth consecutive year. The IKEA brand’s decade-long reign revolves around its efforts to improve affordability and accessibility. In 2023, IKEA announced price reductions, which led to an increase in sales for the year. Further, IKEA also plans to grow its US foothold, investing over USD2 billion in the region over the next 3 years, including the expansion of pickup points for US customers. According to Brand Finance’s research, IKEA continues to perform well in terms of price, meaning value for money, and loyalty.
Volvo up 41%, reclaiming its position as Sweden’s second-most-valuable brand
Volvo (brand value up 41% to SEK130.1 billion) boasts the largest percentage increase in brand value of any Swedish brand this year. This increase sees Volvo reclaim its position as Sweden’s second most valuable brand in the ranking, overtaking H&M (brand value down 4.3% to SEK94.8 billion). Volvo’s improved financial results follow its ongoing transformation to become a more sustainable business as it continues to grow its electric car division.
Volvo’s pledge to commit to sustainability is also mirrored in its improved scores across ESG metrics, according to Brand Finance’s Global Brand Equity Monitor (GBEM) research. Overall, Volvo has experienced a near 10-point improvement in its Brand Strength Index (BSI) score, earning a corresponding AA+ rating.
On the other hand, H&M’s brand value decline (now ranked 3rd) follows a year of difficulty to attract customers and flat sales. H&M also remains under scrutiny as consumers veer away from what they perceive as ‘fast fashion’ brands and gravitate towards more sustainable alternatives.
Brand Finance’s data shows that H&M is perceived to be less sustainable than the sector average for apparel. There has been significant negative publicity about the brand’s alleged misrepresentation of certain products and lines as being sustainable, which may have contributed to this negative perception. This backlash appears to have been so severe that consumers now believe H&M to be even less committed to sustainability than it actually is — H&M has the largest ‘gap’ value of any Swedish brand. Closing this gap ought to be a priority for the brand, given that in the Apparel industry, sustainability is found to be the 3rd most important attribute in driving consumer consideration (9.6%).
Scandic Hotels emerges as Sweden’s strongest brand
Scandic Hotels (brand value down 1.7% to SEK8.0 billion) has become Sweden’s strongest brand, ranked 36th in the overall ranking for brand value. According to Brand Finance’s research, Scandic Hotels has achieved perfect scores for price, familiarity, consideration, and reputation, contributing to its improved BSI ranking. The brand is benefitting from a global uptick in the hospitality sector as consumers reprioritise travelling and the tourism sector rebounds in the post-pandemic era.
ICA (brand value up 8% to SEK20.4 billion) has become Sweden’s second strongest brand, underscoring its significant foothold in Swedish culture as the nation’s biggest retailer as demonstrated by its perfect score for loyalty, according to Brand Finance’s research.
Hot competition among Sweden’s strongest brands, with If, Swedbank, and Spotify entering top 10
Insurance brand If (brand value up 32% to SEK20.7 billion), Swedbank (brand value up 30% to SEK36.3 billion), and Spotify (brand value up 12% to SEK 78.6 billion) all enter the top 10 strongest Swedish brands list this year, in 4th, 6th, and 10th respectively. According to Brand Finance’s research, each of the brands improved in terms of perceived growth scores.
Sweden continues as Nordic Soft Power nation leader
In the Brand Finance 2024 Global Soft Power Index, Sweden ranked 12th out of 193 nations, and ahead of its Nordic neighbours once again. In the 5th iteration of the Index, perceptions of Sweden’s Business & Trade improved, up 1 to 9th globally. Perceptions of Sweden’s ‘future growth potential’ improved dramatically, up 37 to 37th. Sweden also continued to perform well for Sustainable Future (4th) and ranked 3rd in the world for ‘sustainable cities and transport’ and ‘acts to protect the environment’.
On the other hand, the Global Soft Power Index identified growing concern around disinformation as a key trend. Heightened scepticism about the information consumed through social media and global news has led to Media & Communications becoming increasingly important to a nation’s Soft Power. All Nordic countries experienced a decline for the pillar in this year’s Index, with Sweden falling 8 ranks to 16th. For Sweden, and other Nordic countries, this is in part due to language barriers and the relatively smaller size of its market, making it more difficult to extend its reach on the global stage.