Virat Kohli has regained the top spot as India’s most-valued celebrity with a brand value of $227.9 million, as per the report released by Kroll titled ‘Brands, Business, Bollywood Celebrity Brand Valuation Report 2023.’ Ranveer Singh slipped to the second position with a brand value of $203.1 million, while Shah Rukh Khan climbed to third place with $120.7 million. Akshay Kumar dropped to the fourth position with $111.7 million, and Alia Bhatt ranked fifth with a brand value of $101.1 million.
“In the top five, there are no major surprises. There is a slight change in Virat Kohli’s brand value, driven by the number of endorsements and other factors, but he and Ranveer Singh remain very close to each other, as they have been for the last three years. Notably, both have crossed the $200 million benchmark for the first time,” Aviral Jain, CFA, managing director- Valuation Advisory Services, told BrandWagon Online.
The report also highlights a growing trend of Indian celebrities venturing into entrepreneurship and global ambassadorship. Celebrities including Akshay Kumar (Force IX), Deepika Padukone (82°E), and Nayanthara (9SKIN) have launched their own brands across various industries, expanding their influence beyond entertainment. Additionally, Alia Bhatt was recognised as Celebpreneur of the Year, demonstrating the effectiveness of leveraging star power to create successful ventures. The investment trend spans across sectors, showcasing the versatility of celebrity influence.
“The contribution of female celebrities to the total brand value remains similar to previous years, which was around 20%-22% last year. This year, it has increased to 24%. A key driver of this growth is Kiara Advani, whose brand value jumped significantly by about 60%-70%. She moved from rank 16 last year to rank 12 this year. Katrina Kaif rejoined the top 25, while Rashmika Mandanna moved up from rank 25 to rank 20, with about a 50% increase in brand value. Anushka Sharma and Kareena Kapoor have also seen their brand values rise by 20%-30% year on year. Overall, the increase in brand value for female celebrities is positive, with Kiara Advani and Rashmika Mandanna having the most significant impact,” Jain said.
In the advertising industry, the television segment is projected to reach a market size of $9.5 billion in 2025, growing at a CAGR of 3.9% from 2022-2025. It is expected to contribute around 28.0% of total advertising revenues, $4.0 billion, in 2023, increasing to $4.4 billion by 2025 at a CAGR of 5.9%. On the other hand, the digital media segment is forecasted to reach $10.3 billion in 2025 from $6.8 billion in 2022, growing at a CAGR of 14.7% from 2022-2025. Digital media is expected to become the largest segment, accounting for around 50% of total ad revenue in 2023 and reaching $9.2 billion by 2025 with a CAGR of 13.5%.
The top segments utilising celebrity endorsers include Personal Care & Toiletries, Food & Beverages, Real Estate & Construction, Paints, and Health Care. Moreover, the top advertising product brands endorsed by celebrities encompass a diverse range, including Harpic, Asian Paints, Lux Soap, Berger Paints, Thums Up, and Nerolac Paints, among others.
The report further emphasises the significant growth in product brand endorsements by top celebrities, with a cumulative increase to 484 endorsements in 2023, marking a 14.2% rise from 2022. This growth was propelled by a 7% increase in TV endorsements and a 5% rise in digital endorsements, reflecting a CAGR of 6.9% over the last five years. “From a top 25 or top 20 perspective, we have seen significant growth, with the total number of brands increasing by about 40%, from 424 in 2022 to 484 brands. For brands leveraging celebrities, the average fee increase for the top 10 celebrities is about 6%-7% year over year. In the last few years, the percentage increases have been somewhat erratic due to the Covid-19 impact, but we are now seeing a return to more organic growth,” Jain emphasised.
Additionally, Hollywood celebrities like Jessica Alba’s The Honest Company and Kim Kardashian’s SKKN BY KIM have witnessed substantial valuation growth, showcasing successful ventures in the entrepreneurial space. The report also highlights notable acquisitions in the alcoholic beverages sector, such as Ryan Reynolds’ Aviation American Gin and George Clooney’s Casamigos Tequila.
In the Indian market, the return of Shah Rukh Khan has been pivotal in driving industry success. His presence in mega-blockbusters like ‘Jawan’ and ‘Pathaan,’ along with the resurgence of powerful movie sequels, has contributed significantly to Bollywood’s successful return to prominence. “We saw the resurgence on the box office front of Bollywood with Shah Rukh Khan’s brand value jumping up considering his movies like ‘Jawan’ and ‘Pathaan’ with box office collections of more than $100 million each. The year 2023 witnessed a remarkable comeback with a blend of nostalgic hits like ‘Gadar 2’ featuring Sunny Deol, ‘OMG 2’ featuring Akshay Kumar, and ‘Tiger 3’ featuring Salman Khan. This resurgence was fueled by a mix of established stars and highly anticipated sequels, creating a dynamic cinematic landscape,” Jain said.
Furthermore, Gen Z stars are increasingly preferred as brand endorsers due to their adeptness in utilising social media platforms such as Instagram and X (formerly Twitter) to engage with fans and build a loyal following. Their versatility in exploring different roles and genres also adds value to brands seeking fresh faces for endorsements.
“On the regulatory front, recent changes expected in 2024 will impact celebrity endorsements. A Supreme Court order now requires celebrities to certify their claims in advertisements. This will necessitate higher levels of diligence from both agencies and celebrities before endorsing products. This regulation aims to clarify the responsibility and accountability in endorsements, reducing grey areas. Celebrities and brands will likely need to substantiate their claims more rigorously, potentially leading to more cautious advertising. The introduction of penalties or liabilities for false claims is anticipated to drive significant change in the endorsement landscape in India,” Jain opined.