BASF world’s most valuable chemicals brand after year

BASF continues as world’s most valuable chemicals brand

9:42 AM, 7th February 2019
Basf most valuable chemicals brand

LONDON, UK: Germany’s BASF is once again the world’s most valuable chemicals brand after a year in which its brand value grew by 11 percent to $8.3 billion, according to the latest report by Brand Finance, a brand valuation and strategy consultancy. 

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 recognised within the industry for its corporate climate action and water security efforts. The company has also launched an initiative to make BASF Carbon Dioxide neutral by 2030 and to keep its “greenhouse” gases flat between 2018 and 2030, whilst also launching innovative climate friendly chemical production methods. The brand is pioneering revolutionary new technology and digitalising its chemical plants, such as its 600,000 networked sensors which are being used at its main production facility in Ludwigshafen on the Rhine.

“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 modernising 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 of Brand Finance.

DowDupont threat

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 $100 billion spent on transactions.

Although the new DowDupont organization still operates under the Dow and DuPont brands, despite the new company being split into three new entities, the combination of the two brands – $6.8 billion and $3.3 billion respectively – exceeds BASF’s $8.3 billion.

DuPont, which will front the DowDupont specialty chemicals division within the new structure, undertook a rebranding exercise which included, after half a century, a new logo. Over the past year, the company has seen its brand value increase by an impressive 21 percent, the third highest rate of growth across the sector.

Notable high value mergers in chemicals world

Similarly, other high-profile mergers from the sector have resulted in established legacy brands being allowed to continue, a clear indication of the value of their names and reputations within the chemicals industry. Further evidence of this is found in the growth rate of the top 10 brands, which are up by 8 percent. Other high-profile mergers, including Linde-Praxair (up 14 percent to $2.3 bn) and Air Liquide-Airgas (up 10 percent to $2.6 bn), have resisted the opportunity to tamper with existing brands in the market.

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 18 percent to achieve a brand value of $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.

Fastest growing brand is South Korea’s LG Chem 

South Korea’s LG Chem brand grew faster than any other chemicals brand, its brand value rising by 38 percent to $3.3 billion and moving them the company from fifth to fourth to overtake DuPont. LG Chem has enhanced its brand visibility in Asia, largely due to increased sales and expansion of the company’s battery plants in China.

A new entrant to the table is Lyondellbasell of the US (brand value up 32 percent to $3.1bn), just a year on from its major rebranding exercise. This impressive spike in growth is the second highest rate of improvement across the chemicals sector. The brand’s public image has arguably been boosted by its commitment to help end plastic waste through chemical recycling and a variety of plastic recycling ventures.

Strongest Chemicals Brands

Aside from determining overall brand value, Brand Finance also evaluates the relative strength of brands through a balanced scorecard of metrics on marketing investment, stakeholder equity, and business performance. Along with the level of revenues, brand strength is a crucial driver of brand value.

According to these criteria, DowDuPont is the world’s strongest chemicals brand with a Brand Strength Index (BSI) score of 84.8 out of 100 and a corresponding AAA brand rating, making Dow the first chemicals company to achieve a AAA rating. Behind Dow, DuPont is unchanged at 82.3 out of 100 and BASF (81.55 out of 100) is in third position. Notable fallers by brand strength include Japan’s Asahi Kasei Group, which dropped to 63.36 out of 100, a decrease of 7 percent since last year.

Table

World's Most Valuable Chemicals Brands, 2019

2019 Rank 2018 Rank Brand name Country Brand Value 2019 (USD bn) Brand Value 2018 (USD bn) Brand Value Change (%) 2019 Brand Strength Rating 2018 Brand Strength Rating
1 1 BASF Germany

8,253

7,449 11% AAA- AAA-
2 2 DOW United States 6,819 6,544 4% AAA AAA-
3 3 SABIC Saudi Arabia 3,964 3,722 6% AA+ AA+
4 5 LG CHEM South Korea 3,338 2,421 38% AA AA
5 4 DUPONT United States 3,261 2,685 21% AAA- AAA-
6 NEW Lyondellbasell United States 3,073 2,324 32% AA- AA-
7 6 Air Liquide France 2,594 2,347 10% AA AA
8 8 Mitsubishi Chemical Japan 2,535 2,259 12% AA- AA-
9 NEW Praxair United States 2,307 2,015 14% AA+ AA+
10 7 Asahi Kasei Corp Japan 2,246 2,345 -4% A+ AA-


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