Aldi has leapfrogged Tesco in BrandZ's Top 100 Most Valuable Global Retail Brands ranking.
The German hard-discounter, which is on a rapid expansion in the UK, has moved into 8th place in the table compiled by the world's largest brand equity database, with a value of £7.6 billion.
While Aldi’s brand value grew by 22 per cent on last year, Lidl grew by 27 per cent to take 20th place with a brand value of £3.9bn.
Tesco, while still being the only major UK supermarket to hold a place in the global ranking, has seen its brand value plummet 37 per cent to £6.1bn.
However, it still featured in the top ten list of the UK's most valuable brands (across multiple sectors), coming in in sixth place, behind BP, BT, Shell, HSBC and table-toppers Vodafone.
Meanwhile, in the global retail brand value list, other retailers saw their values fall, with Carrefour declining 12 per cent to $8bn and Whole Foods falling 24 per cent to around $7bn.
Alison Casey, senior client director for retail at Millward Brown, which released the list along with WPP, said: "The discounters provide a great customer experience. They are relevant to cost-conscious shoppers with everyday low pricing and their smaller-sized store shopping format is more suited to today’s ‘small and often’ shopper. Importantly, they have also articulated and clearly communicated what they stand for.
"Lidl’s TV advertising in particular tells a compelling story in a meaningful and relevant way. Its ‘surprises’ ad was one of the best-loved and most persuasive Christmas TV adverts last year, with respondents saying it made them more likely to buy the brand."
Top 20 most valuable global retail brands 2015 (BrandZ)
The Home Depot