Amul strongest food brand in the world in 2024: Brand Finance report

Amul shares its prestigious AAA+ brand strength rating with Hershey's, though the latter saw a slight 0.5% dip in brand value to $3.9 billion, placing it second after leading the list last year

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Amul, a company with over seven decades of history, has been recognised as the world’s strongest food brand in Brand Finance’s Global Food & Drinks Report 2024. The report highlights Amul’s impressive Brand Strength Index (BSI) score of 91 out of 100, earning it an AAA+ rating.
 

Amul’s brand value saw an 11 per cent increase from 2023, reaching $3.3 billion in the latest ranking. The brand value, however, should not be confused with turnover. In 2022-23, Amul clocked its highest ever sales of Rs 72,000 crore (about $8,5 billion), a jump of 18.5 per cent over the previous year. The report attributes the improvement in Amul’s BSI particularly to higher scores in familiarity, consideration, and recommendation metrics.
 

Amul shares its AAA+ brand strength rating with Hershey’s, though Hershey’s experienced a slight 0.5 per cent dip in brand value to $3.9 billion, placing it second after leading the list last year. Amul dominates India’s dairy market with nearly 75 per cent of the milk market, 85 per cent of the butter market, and 66 per cent of the cheese market.

Brand equity amidst industry shift

Ajimon Francis, managing director at Brand Finance India, explained that brand strength is assessed using over 35 parameters. These include various dimensions of brand development, such as the impact of advertising, product diversity, consumer quality perceptions, social media influence, and web traffic. The evaluation also considers brand equity through sustainability efforts, community involvement, and governance. The resulting brand equity must lead to positive business outcomes like revenue growth, profitability, and customer loyalty.
 

Savio D’Souza, valuation director at Brand Finance said, “The food and beverage industry is undergoing a rapid transformation driven by evolving consumer preferences. While the decline in brand value is a challenge, it also presents opportunities for innovation. Brands that successfully adapt to these trends by demonstrating strong brand purpose and delivering exceptional consumer experiences will be the ones to thrive in this new landscape.”

 

Table: Brand Finance’s Global Food & Drinks Report 2024

Big brands face rising challenges

In the broader market, Nestlé remains the most valuable food brand globally, valued at $20.8 billion, despite a 7 per cent decline from the previous year. Lay’s has risen to the second position with a valuation of $12 billion. In the non-alcoholic beverage sector, Coca-Cola remains the leader, followed by Pepsi in second place.
 

The report also showed a 4 per cent drop in the overall brand value of the food and beverage sector, totalling approximately $268 billion. It noted a shift in consumer preferences towards smaller, private-label brands that offer unique and personalised products, posing challenges for established brands. Convenience foods, on the other hand, are experiencing rising brand value due to increasing demand, signaling opportunities for new brands that can adapt to these evolving consumer trends.