Strong brand equity can make all the difference when the market is saturated with products. More than just a buzzword, brand equity represents the value your brand holds in the minds of consumers, influencing everything from loyalty and pricing power to market resilience. But how can plant-based brands cultivate strong brand equity, and why does it matter financially?
The value of brand equity
Big corporations like Coca-Cola have long recognised the financial power of brand equity, with the brand alone valued at over USD 106 billion. While plant-based brands may not yet have reached such high numbers, the same principles apply. A strong brand creates loyal customers, allows for premium pricing, and provides a buffer against market competition.
Key benefits for plant-based brands
- Higher consumer loyalty: A brand that aligns with consumers’ values – such as sustainability and health – creates lasting trust and reduces brand-switching.
- Premium pricing: Brands with strong equity can command higher prices. Branding Byron Sharp emphasises that brand salience – how easily your brand comes to mind – plays a crucial role in driving this advantage.
- Market protection: As the plant-based sector grows, more competitors enter the space. Well-developed brand equity acts as a safeguard, making it harder for new entrants to take market share.
Measuring brand equity
Understanding and tracking brand equity is key to sustaining it. Successful brands measure it through:
- Consumer perception surveys
- Retention rates and repeat purchases
- Social media engagement and sentiment analysis
- Financial valuation models
Real-world examples
Brands like Beyond Meat, Oatly, and Heura Foods have built strong brand equity through quality, activism, and community engagement. Beyond Meat is synonymous with innovation, Oatly leverages distinct branding and environmental advocacy, and Heura fosters a loyal consumer base through mission-driven storytelling.
Brand equity isn’t just about marketing – it’s a tangible asset that influences business growth, financial valuation, and investment potential.
Want to dive deeper into strategies for building, maintaining, and measuring brand equity? Read the full article on ProVeg International’s New Food Hub and get in touch with their experts at [email protected].
