Porsche has once again been named the world's most valuable luxury and premium brand, according to Brand Finance's Luxury and Premium 50 2026 report, marking nine consecutive years atop the ranking. The German automaker's brand value stands at $35.2 billion, though that figure represents a 15% drop from last year, driven by softer demand in China, tariff pressures from the United States, thinner profit margins and costs tied to reworking its electric vehicle strategy. Under chief executive Michael Leiters, the company is focused on restructuring and shoring up its competitive position for the long term.

Chanel holds second place with a brand value of $34.3 billion, down 9%, as weaker spending in China and the US, softness in China's leather goods market, and repeated price hikes took a toll. Even so, the brand retains near-perfect familiarity and reputation scores in China, alongside strong showings in France and the UK. Louis Vuitton rounds out the top three at $28.8 billion, down 12%, hurt by falling tourist spending and economic uncertainty, though Japan remains its top-performing market.

While Porsche leads on value, Dior is rated the strongest brand overall, the only one in the report to score above 90 on Brand Finance's Brand Strength Index, at 91.5 out of 100, earning an AAA+ rating. Chanel follows with 89.8, and Rolex takes third with 87.1, buoyed by its exclusivity and sponsorship reach.

The fastest-growing brand in the sector is Veuve Clicquot, whose value jumped 39% to $1.4 billion, fueled by stronger consumer engagement and momentum in both France and the US.

Apparel remains the industry's biggest category, encompassing 33 brands and worth $204.5 billion, despite a 7% decline this year. Brand Finance says the luxury sector overall is becoming more polarized, with automobiles, hotels, and champagne and wine proving more resilient as spending shifts toward experiences.

Henry Farr, the firm's global sector head of luxury and premium, said the current slowdown shouldn't be read as collapsing demand, noting more than half of luxury brands in comparable categories are still growing.

Brands to watch include Jaguar, which is preparing to relaunch as an all-electric marque with its upcoming Type 01 model, and Monte-Carlo Société des Bains de Mer, which is expanding beyond Monaco with a new hotel in Courchevel. Alpine crossed the $1 billion valuation mark for the first time, up 33%, aided by its Formula One exposure, while Shangri-La rose 3% to $1.6 billion.

Sustainability also factored into brand perception, mattering most in the auto (22%) and champagne and wine (19%) categories. Bottega Veneta led on environmental perceptions, Coach on social sustainability, and Jaeger-LeCoultre on governance.

Source: Brand Finance

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