Brand Finance: Automobile, watch and cosmetic brands the world's most valuable luxury brands
Porsche is the world’s most valuable luxury and premium brand for eighth year running, while Chanel is the fastest-growing luxury and premium brand in 2025, surpassing Louis Vuitton, and Dior has emerges as the strongest luxury and premium brand.
This is according to a new report from Brand Finance, the brand valuation consultancy.
With a brand value of $41.1bn, Porsche retains the top spot despite a 5% drop in brand value, which Brand Finance attributes to weaker demand in China and Europe, impacting overall performance.
However, Brand Finance research shows Porsche scores a high 9.3 out of 10 for price acceptance, reflecting strong consumer willingness to pay a premium for its products.
This aligns with Porsche’s long-term strategy to prioritise value over sales volume.
Brand Finance research also highlights high ratings for reliability (9.6) and reputation (9.7) globally, affirming its enduring position as a leader in the luxury automotive market.
Chanel has surpassed Louis Vuitton to rank as the world’s second most valuable luxury and premium brand following a 45% increase in brand value to $37.9bn.
This also makes it the fastest-growing brand in the ranking.
Hermès remains the fourth most valuable luxury and premium brand globally and is one of only two brands in the top 10 to retain its position from 2024.
The other is Dior, whose brand value increased 18% to $7.3bn and ranks in sixth place.
Demand for luxury watches
Rolex climbed two positions from 2024 to rank fifth, driven by a 36% increase in brand value to $18.8bn.
This also makes it the fifth fastest-growing brand in the ranking.
According to Brand Finance, this growth reflects record-high revenues and sustained demand for luxury watches.
Rolex is unlikely to face significant challenges from the rise of the secondary market, particularly as it has already established a foothold in second-hand watches through its Certified Pre-Owned scheme, which it began in 2022, leveraging its heritage, consumer trust, and brand equity.
However, reports indicate that Rolex has announced price increases by an average of 3% in response to new 10% US tariffs on Swiss goods, which could present challenges given that the US is its largest market by sales.
Cartier has climbed one position to rank seventh, with its brand value rising 15% to $15.7bn.
A strengthened brand equity
Ferrari has climbed one position each to rank eighth, recording a 36% increase in brand value to $14.4bn, making it the fourth fastest-growing brand in the ranking, and the 11th most valuable automobile brand globally.
Ferrari continues to prioritise scarcity and high-margin models, reinforcing its luxury appeal and strong financial performance.
The brand’s disciplined market positioning has driven success in key regions, including the US, Japan, Germany, and Italy.
A focus on product customisation, premium pricing, and expanding lifestyle partnerships has strengthened brand equity.
Despite a 24% decline in brand value to $11.4bn and a fall of four places to ninth, Gucci remains among the world’s top 10 most valuable luxury and premium brands.
Organic revenue growth in perfume
Guerlain has experienced a 23% increase in brand value to $7.7bn, re-entering the top 10 for the first time since 2021.
Brand Finance attributes this rise to its strong financial performance.
Parent company LVMH reported 4% year-on-year organic revenue growth in its perfume and cosmetics division for 2024.
LVMH credits this growth to strong momentum from brands like Guerlain, particularly of its L’Art & La Matière collection and the launch of the new Florabloom scent in its Aqua Allegoria line.
Strongest luxury brands
In 2025, Dior rose three positions in the brand strength ranking to become the strongest luxury and premium brand with a BSI score of 93.5 out of 100. Dior’s score also propelled it into the top 10 strongest global brands list among the world’s 500 most valuable brands for 2025.
Ferrari is the world’s second strongest luxury and premium brand, with a BSI score of 90.1 out of 100.
Brand Finance research shows that it earns 9.6 out of 10 for both reputation and likeability, highlighting its heritage, legacy, and emotional appeal.
Ferrari CEO Benedetto Vigna also ranks fourth among the world’s top CEOs and leads for the automobiles and luxury and premium sectors, further highlighting the prancing horse’s brand positioning.
Lancôme has entered the top 10 for brand strength, moving up from 11th place in 2024 to eighth place, with a BSI score of 88.4 out of 100.
Brand Finance attributes this performance to strong price acceptance, with a score of 9.6 out of 10, reflecting consumers’ willingness to pay a premium for its products.
Brand Finance research also reveals that Lancôme performs particularly well in China, where it earns a BSI score of 98.3 out of 100 – notably higher than its global average, underscoring its significant footprint in this market.
A shifting sector
Henry Farr, Valuation Director, Brand Finance, comments, “From 2019 to 2024, the luxury and premium sector saw a period of serious value creation, with the brand value of the world’s top 50 brands surging 43%.
“For 2025, that momentum has continued, reaching a record $317.0bn.
That said, the sector is shifting. Growth is expected to slow, and brands must now navigate changing consumer preferences towards prioritising premium experiences like travel and meaningful social moments over material goods.
“The era of easy price hikes, thanks to persistent demand, is over, and luxury brands must evolve to stay relevant.”