Brand Finance, the leading independent branded business valuation and strategy consultancy, recently released its annual
report on the world’s most valuable and strongest chemicals brands.
The top 10 performers are BASF, DowDuPont, SABIC, LG
Chem, DuPont, Lyondellbasell, Air Liquide,Mitsubishi Chemical, Praxair and Asahi Kasei, while
LG Chem is the world’s fastest growing chemicals brand, said the report.
“BASF’s brand, which has a
powerful track record over a number of years, could come under real pressure
from the combined DowDuPont merger, which brings two compelling brands under
one umbrella. The modernizing of chemical plants is now more crucial than ever
as brands compete to update their production facility processes and also ensure
that all work in research and development is underpinned by digital solutions,”
said David Haigh, CEO, Brand Finance.
German
giant BASF defends title
Germany’s BASF is once again the world’s
most valuable chemicals brand after a year in which its brand value grew by
10.8% to US$8.3 billion.
BASF’s brand value was boosted by the
unveiling of a new strategy which included ambitious new targets, more focus on
organic growth and greater emphasis on expansion in Asia, notably across China.
BASF has been recognized within the industry for its corporate climate action
and water security efforts.
DowDuPont
benefits from rebrand
While BASF is the leading chemicals company
by brand value, it looks set to face stern competition from the DowDuPont
company, which merged in 2017. The Chemicals sector continues its path of
consolidation and M&A remained buoyant in 2018, with US$100 billion spent
on transactions.
Although the new DowDuPont organisation
still operates under the Dow and DuPont brands, despite the new company being
split into three new entities, the combination of the two brands – US$6.8
billion and US$3.3 billion respectively – exceeds BASF’s US$ 8.3 billion.
SABIC
holds firm in 3rd place
A new entrant to the Brand Finance
Chemicals 10 ranking last year, Saudi Arabian petrochemicals giant SABIC has
held firm in third place and seen a solid brand value growth of 6.5% to achieve
a brand value of US$4.0 billion.
This success can be attributed to the
brand’s continued expansion of investments across China, despite an expected
slowdown in the country’s economic growth. SABIC has also continued to raise
its presence in Africa which remains a promising lucrative market.
LG
Chem the fastest growing brand
South Korea’s LG Chem brand grew faster
than any other chemicals brand, its brand value rising by 38% to US$3.3 billion
and moving them the company from fifth to fourth to overtake DuPont.
The brand has enhanced its
brand visibility in Asia, largely due to increased sales and expansion of the
company’s battery plants in China.