New DelhiIndia's top 25 celebrities, combining Bollywood stars and sportspersons, will garner an estimated brand value of $1.9 billion in 2023, registering 15.5% growth year-on-year, with a notable recovery and steady increase among leading personalities such as Virat Kohli, Ranveer Singh and Shah Rukh Khan.
This growth highlights the strong market demand for celebrity sponsorship deals, which despite some fluctuations and portfolio changes, has led to significant increases in brand value and sponsorship fees.
Leading the way is cricketer Virat Kohli, who has bounced back strongly from the declines of the past few years. According to corporate research and risk consulting firm Kroll's latest Celebrity Brand Valuation report, Kohli's brand value is set to soar from $176.9 million to $227.9 million in 2022, a notable increase of 28.9%. However, his current valuation is still below his pre-pandemic peak of $237 million.
Kohli's diverse portfolio comprises over 40 brands, spanning various industries, and he was recently signed as a brand influencer for HSBC India.
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“Brand, Business and Bollywood Celebrity Brand Valuation Report 2023' highlighted the steady growth in film actor Ranveer Singh's brand value over the past four years, with his valuation nearly doubling from $102.9 million in 2020 to $203.1 million by 2023. Despite dropping one place this year, Singh's brand value has crossed the $200 million mark for the first time.
Known for his talent for storytelling, Singh has a strong portfolio of 50 brands including Tiffany & Co. and Zomato during the ICC Men's Cricket World Cup 2023. His brand churn rate is low at 2.9% and he has seen big changes such as Coca-Cola's Thumbs Up to PepsiCo's Pepsi. Singh has also ventured into investments and recently became a major shareholder in boAt.
Veteran actor Shah Rukh Khan recorded the highest growth rate among his peers, with his brand value jumping from $51.1 million in 2020 to $120.7 million in 2023, an astounding increase of 116.6%.
Meanwhile, actor Akshay Kumar is on the decline, with his brand value falling by over 23% to $111.7 million in 2023. Despite this, 60% of Kumar's endorsement portfolio has remained stable since 2020. Alia Bhatt has also seen significant growth, with her brand value increasing by 110.6% over three years and remaining at the same valuation as the previous year.
Aviral Jain, managing director, valuation advisory services at Kroll, noted that sponsorship deals by the top 20 celebrities have grown by 14%, with overall brand value being primarily driven by the top 10. “We are seeing a sustained growth trajectory in terms of both overall brand value and sponsorship fees, with sponsorship fees from the top 10 celebrities growing by an average of 6-7%.”
Despite some fluctuations, the market remains robust. Of the top 25 brands by brand valuation revenue, two-thirds are accounted for by Bollywood stars, 28-29% by sports personalities and the remaining few percent by South Indian celebrities.
“We are also not expecting any non-cricketer to make it into the top 25,” Jain said, adding that celebrity endorsements help many established businesses gain customers faster, while new and emerging companies gain instant recognition through such endorsements.
Advocacy to accelerate market reach
Our method for ranking celebrity endorsed products considers two main factors: the average fee paid for an endorsement and the number of endorsement deals aligned between brands. This provides a rating that reflects each brand's recent popularity and ability to make the most of their endorsement success.
Celebrity endorsements can have a big impact on long-term sales, as Bon Nutrients' recent deal with Katrina Kaif for its bread and “Americana” biscuit brand shows.
“Using a celebrity doesn't necessarily translate into instant sales, but if a company needs to appeal to the masses, it is the best route to market,” Dwinder Pal, group marketing head at Bon Nutrients, said on signing an Indian celebrity.
Kaif joins the list of India's most valuable celebrity brands at number 25, valued at $27.1 million.
The report also looked at the TV presence of the top 25 celebrity brands and revealed that 311 products across 22 industry segments were being promoted as of November 2023. Popular brands on TV include toilet cleaner Harpic promoted by Akshay Kumar, Lux soaps promoted by Anushka Sharma and Virat Kohli, and Veet promoted by Sara Ali Khan.
2023 has been the year of the rise of Indian “celebrity entrepreneurs” with Akshay Kumar launching his athleisure brand Force IX, Kareena Kapoor Khan launching her Korean skincare brand Quench Botanics and Deepika Padukone launching her luxury skincare brand 82°E.
Additionally, Indian celebrities have expanded their international presence with the likes of Katrina Kaif partnering with Etihad Airways and Alia Bhatt becoming Gucci's first Indian global ambassador. Meanwhile, there has been a major shift in global celebrities partnering with Indian brands, such as Infosys partnering with tennis champions Rafael Nadal and Iga Swiatek, and Zomato partnering with cricket star Chris Gayle.
“In 2024, AI will start being used in mainstream advertising to endorse products with celebrities. This will help generate better returns on investment for advertisers,” Jain added.
India's media and entertainment sector grew 11.4% to $28 billion in 2023, driven by digital media, online gaming, and animation. The sector is projected to grow at a compound annual growth rate (CAGR) of 10.5% from 2022 to 2025, reaching $34 billion by 2025.
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