LONDON — Nestlé SA continues to rank as the world’s most valuable food brand, according to a new report by brand valuation consultancy Brand Finance. The report analyzes several factors to determine brand value, including brand strength, revenue and royalty rates.

The brand value of Nestlé has decreased 7% from $22.4 billion to $20.8 billion. Brand Finance attributes strong brand equity and resilience for why the Switzerland-based company, despite its decline in brand value, continues to hold the top position in the global food industry, which it has done since the first report was published back in 2015. The report also cited the company’s ability to adapt to changing consumer preferences and maintain a diverse product portfolio as reasons for its continued success.

Meanwhile, Purchase, NY-based PepsiCo, Inc.’s Lay’s brand ranked as the second most valuable food brand. Its brand value rose 9% to $12 billion, with the report attributing the brand value growth to strong financial performance and innovative product offerings such, as the Flavor Swap and MAX lineups.

Lay’s surpassed Chinese dairy manufacturer Yili, which now holds the third spot and saw a 6% decrease in brand value to $11.6 billion.

The report’s Sustainability Perceptions Index found Nestlé has the highest Sustainability Perceptions Value at $1.4 billion and that Lay’s has the highest positive gap value of $67 million amongst the ranked brands.

Other leading baking brands in this segment include Conagra brand Healthy Choice, which saw its brand value increase 17% to $1.4 billion, and Nestlé brand DiGiorno, which saw its brand value increase 17% to $1 billion. The report said both brands successfully have adapted to changing consumer preferences through innovative product releases and strategic marketing.

Similarly, new entrant Viterra, which saw its brand value increase 37% to $1.1 billion, has recorded the largest brand value growth by percentage in the ranking. The report attributed the growth to increased volumes, strategic acquisitions and a higher BSI score (60.6 out of 100).

Overall, the food and beverage sector saw a 4% decrease in brand value from the year prior, totaling approximately $268 billion. The report attributed the decline to consumers increasingly favoring smaller, private label brands over big names for unique, personalized products. Brand Finance also said convenience foods and dairy continue to be major contributors to food and beverage sales, with convenience foods thriving due to the consumers’ busy lifestyles and dairy benefiting from plant-based options and health trends.

“The food and beverage industry is undergoing a rapid transformation driven by evolving consumer preferences,” said Savio D’Souza, valuation director of Brand Finance. “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.”