Design ↙

Market Analysis

for
the Future
White Paper //

Study Food & Beverage

The brands that people find compelling today –
and the ones they expect to remain successful tomorrow.

1 2023
↓
 ↙
Table of contents
Market Analysis

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p.21
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White Paper //

p.04
Introduction and
management Part 2: Which
summary brands are role
models Part 3: How
brands can use
design to future-
Study
Part 1: The mood proof themselves
in Germany

DESIGN FOR THE FUTURE 2023

 5.016 consumers

Brands in the age of

overlapping change

The effects of war, the climate crisis, and in-

flation are being felt across all sectors and
are of concern to consumers throughout Ger-
many. This is also changing the way they look
at brands. Consumers don't expect every
brand to play a significant role in the future.

Our representative study Design for the Fu-

ture 2023 reveals what people expect from
brands, and which ones they trust. The first
edition of the study examined 20 food and
20 beverage brands.

Consumers don't expect every

brand to play a significant role in
the future.

DESIGN FOR THE FUTURE INTRODUCTION & MANAGEMENT SUMMARY 4

Management Summary: Market Analysis

The most important

findings
3 Sustainability is still important

Even though consumers are very concerned about the rising

cost of living, people still expect brands to be able to demon-
strate that they act sustainably.

Summary Findings

1 Even top performers have to keep working

on themselves 4 Some products have some explaining to do

Meeting today's expectation doesn't guarantee you're fit for Sparkling wines, energy drinks, and snacks are brands that
the future. Many top brands are expected to play a less promi- stand for enjoyment and joie de vivre, but not for healthy nu-
nent role going forward. trition. They currently are not perceived as role models, but
they have potential.

2 Price trumps brand loyalty 5 Getting brands ready for Gen Z

Brands are often forced to pass on increased raw material Social values are shifting, and so are brand perceptions.
and energy prices – and immediately face pushback. Only Generation Z thinks more optimistically and more digitally,
20% of respondents said they would remain loyal to brands in and also has more confidence in many current brands.
spite of price increases.

DESIGN FOR THE FUTURE INTRODUCTION & MANAGEMENT SUMMARY 5

 Market Analysis

The
mood in
Germany

6 2023
 Study

The mood 4%
The world‘s problems have increased.
64%
More problems, The problem in our country have increased.

less money 4% 61%

6%
Pessimism is spreading, with 64% of re-
spondents concurring that global problems
have increased. Unlike in the past, however, 9%
these problems are not far away, but have tan-
gible effects, not only in Germany as a whole
The future is less certain than it was five years ago.
58%
I am more afraid of the future now than I was five years ago.
51%
The increasing coldness in our society is dangerous.

but to individuals' future and their financial situ- 6% 48%

ation.
The general standard of living in Germany will decrease.

Only 19% reject the idea that their own fi- 6% 47%
nancial situation has worsened in the past Everything is changing so fast, you don‘t know what to hold on to.
two years. 12% 37%
My personal financial situation has worsened in the past two years.
19% 37%
My personal financial situation will worsen within the next two years.
17% 30%

DESIGN FOR THE FUTURE THE MOOD IN GERMANY 7

 Study

The concerns Which of these things are you concerned or worried about when you think of the future?
Answers for: Very fearful; Somewhat fearful (Top 2)

Prices, war and Rising energy costs 82%

climate crisis rising food costs
81%

Economic insecurity 74%

Above all, rising energy and food costs are
Radicalization of society 73%
causing fear and anxiety among those sur-
veyed. Untenable housing costs 73%

In contrast, the effects of the coronavirus pan- War in Ukraine 71%

demic have lost their terror. Environmental
Environmental housing costs 71%
problems are a conspicuous factor in the re-
sponses to environmental pollution (71%) as Worldwide shortages of
71%
food and drinking water
well as weather extremes and the climate crisis
(67% each). Extreme weather/
Catastrophic storms
67%

Climate crisis 67%

Terrorist attacks 61%

Total digital surveillance 53%

Effects of the coronavirus 33%

pandemic

20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (N=5016)

DESIGN FOR THE FUTURE THE MOOD IN GERMANY 8

 The expectations
Sensitivity to social issues
55%
„BRANDS SHOULD BE HELD
and price concerns RESPONSIBLE FOR SUSTAINA-
BILIT Y ISSUES.“
Brands run the risk of losing customers due to price increases. 70%
of respondents believe that some companies take advantage of in-
flation to raise prices unnecessarily. Yet only 20% say they remain
loyal to brands even when they become more expensive during a
crisis. At the same time, consumers expect brands to take on social
responsibility.

54%
„BRANDS CARRY SOCIAL
RESPONSIBILIT Y.“

59%
„BRANDS SHOULD BE ABLE
TO PROVE THEY ARE ACTING 52%
SUSTAINABLY.“ „BRANDS CARRY RESPONSIBILIT Y FOR DRI-
VING TECHNOLOGICAL DEVELOPMENT.“

DESIGN FOR THE FUTURE THE MOOD IN GERMANY 9

Which
Market Analysis

brands
are role
models

10 2023
 Detailed Analysis

Price pressure and

new competitors

Food and beverage brands are facing pres-

sure from increasingly price-conscious con-
sumers on the one hand, and new challenger
brands flooding supermarket shelves on the
other. With their unconventional branding and
the promotional support of online influencers,
these brands are courting younger consumers
in particular. Traditional brands whose strength
lies in their market presence and long-stand-
ing customer loyalty are in danger of losing
entire generations of customers.

That's why our study also examined how the

Traditional brands whose
strength lies in their market
presence and longstanding ties
expectations, brand perceptions and
planned purchases of Generation Z differ
from those of the rest of the respondents.
A detailed analysis of the representative
data makes it possible to draw conclusions
about individual brands.

risk losing entire generations of

customers.

DESIGN FOR THE FUTURE WHICH BRANDS ARE ROLE MODELS 11

 Study

Today's role models Veganz 79%

Food brands Frosta
Rügenwalder Mühle
78%
78%
Leibniz 78%
Weihenstephan 77%
We asked consumers what they expect from
brands, and also which brands are currently
Iglo 75%
meeting their expectations better than ot- Oatly 75%
hers. The neck-and-neck race for the top Ritter Sport 75%
positions shows: Dr. Oetker 74%
Brands like Veganz, which at their core corre- Knorr 73%
spond to social developments, find it easier to Wagner 72%
survive in the current market. But established Milka 71%
brands are also capable of making the neces-
sary changes. Rügenwalder Mühle is a pro-
Maggi 71%
ducer of meat products that has managed Duplo 69%
to win over vegan consumers with an expan- Müller 69%
ded product range. And Frosta has seen that Gutfried 69%
it pays off for the brand to have consistently
avoided additives such as flavor enhancers Kinder Riegel 67%
and colorants since 2003. Wiesenhof 61%
Pringles 60%
Nutella 59%

DESIGN FOR THE FUTURE WHICH BRANDS ARE ROLE MODELS 12

Values Transformation

Evolving social values clear

the way for new, sharply posi-
tioned brands to gain a foot-
hold. That's also true for es-
tablished brands – if they're
willing to change their game.
New opportunities
for established players

DESIGN FOR THE FUTURE WHICH BRANDS ARE ROLE MODELS 13

 Study

Today's role models Bionade 84%

Beverage brands hohes C
Sodastream
84%
83%
Gerolsteiner 82%
Krombacher 79%
Hohes C and Bionade top the ranking, with
Sodastream and Gerolsteiner close behind.
Granini 79%
Cola brands and energy drinks come in last, as Becks 76%
it appears consumers think sugary drinks don't Share 76%
meet the criteria for role models. Warsteiner 76%
Still, the examples among food brands Bitburger 75%
prove that even well-established brands Innocent 75%
can successfully redefine themselves. Rotkäppchen 75%
True Fruits 75%
Volvic 75%
Fürst von Metternich 73%
Freixenet 70%
Pepsi 68%
Coca-Cola 65%
Red Bull 62%
Monster 61%

DESIGN FOR THE FUTURE WHICH BRANDS ARE ROLE MODELS 14

 Study

Future-proof
Food brands 80%
Veganz
Leibnitz Frosta Rügenwalder Mühle
Weihnstephan

We asked consumers which brands will be 75% Ritter Sport Iglo Oatly
Dr. Oetker
able to meet the challenges of the future Knorr
and successfully maintain their strength in Wagner
the marketplace, and which would not. Maggi Milka

Strong position currently

70% Duplo Gutfried
Müller
The findings: Not every brand that is perceived
as strong today is also considered to be future- Kinder Riegel
proof. These brands – including Leibnitz, Knorr
and Wagner – appear in the upper left-hand
65%
quadrant of the graph.
Wiesenhof
60% Pringles
Nutella

55%
15% 20% 25% 30% 35% 40% 45% 50%
Strong position in the future

DESIGN FOR THE FUTURE WHICH BRANDS ARE ROLE MODELS 15

 Study

Future-proof
Beverage brands 85% hohes C Bionade
Gerolsteiner Sodastream

80% Granini
Krombacher
There are also some beverage brands – Warsteiner Share
including Gerolsteiner, Granini, Warsteiner Becks
Bitburger
and Becks, for example – that are currently 75% Rotkäppchen
Volvic Innocent True Fruits
Fürst von Metternich
perceived as stronger than others, but consu-

Strong position currently

mers question whether they will stay relevant
in the future. It's worth noting that cola brands 70% Freixenet

and energy drinks are expected to fare consid- Pepsi

erably better in the future than they do today.

65% Coca-Cola

Red Bull
Monster
60%

55%
15% 20% 25% 30% 35% 40% 45% 50%
Strong position in the future

DESIGN FOR THE FUTURE WHICH BRANDS ARE ROLE MODELS 16

Future Strategy

What's good at the moment

is not necessarily what's
right for the future.

Nostalgia is not
a valid strategy

DESIGN FOR THE FUTURE WHICH BRANDS ARE ROLE MODELS 17

 Study

The Gen Z This brand will continue to play a positive role and meet my expectations in the future.
Answers: Will play a very positive role; Will play a mostly positive role (Top 2)

perspective Wagner 22%

Food brands Milka

Veganz
25% 35%
43% 46%
Iglo 29% 31%
Knorr 26% 31%
Generation Z sees food brands differently than the Gutfried 24% 26%
rest of those surveyed. Respondents between the Pringles 21% 29%
ages of 15 and 29 place more trust in chocolate Maggi 22% 25%
brands, in particular. But their views toward Veganz, Dr.Oetker 27%
Frosta and Rügenwalder Mühle reveal that what Leibniz 22%
older generations perceive as innovative is just Weihenstephan 25% 28%
normal to Gen Z. Wiesenhof 26%
Oatly 46%
Nutella 21% 28%
Ritter Sport 26% 29%
Frosta 31% 38%
Duplo 20% 22%
Rügenwalder Mühle 33% 40%
Kinder Riegel 22% 31%
Müller 26%

10% 13% 15% 18% 20% 23% 25% 28% 30% 33% 35% 38% 40% 43% 45% 47%

Total Gen Z Total (N=998)

DESIGN FOR THE FUTURE WHICH BRANDS ARE ROLE MODELS 18

 Study

The Gen Z This brand will continue to play a positive role and fulfill my expectations in the future.
Answers for: Will play a very positive role; Will play a mostly positive role (Top 2)

perspective Rotkäppchen 19% 22%

Food brands Bitburger

hohes C
21% 23%
31% 40%
True Fruits 37% 42%
Volvic 29% 39%
On average, Coca-Cola (+6%) and Pepsi (+9%) Krombacher 24% 26%
perform better among Gen Z than all other re- Becks 21% 26%
spondents. On the topic of sustainability, Red Freixenet 18%
Bull ranks even higher than the overall leader, Share 36% 39%
Sodastream. All three brands are intertwined Gerolsteiner 23% 27%
with popular culture; Red Bull gains added at- Warsteiner 21%
tention with its sponsorships of extreme sports. Bionade 36%
Red Bull 30% 45%
Granini 26%
Fürst von Metternich 20% 23%
Pepsi 26% 36%
Monster 22% 26%
Innocent 33% 37%
Coca-Cola 33% 39%
Sodastream 42% 44%

10% 13% 15% 18% 20% 23% 25% 28% 30% 33% 35% 38% 40% 43% 45% 47%

Total Gen Z Total (N=994)

DESIGN FOR THE FUTURE WHICH BRANDS ARE ROLE MODELS 19

 Urgently needed: I will pay more often using my
smartphone.
Good sales pitches
The pessimistic view of the future has an impact. Most consumers 22%
say they plan to shop more consciously in the future. Brands that
do not meet their values and expectations run the risk of falling
through the cracks.

33%
Not surprisingly, younger target groups are more online-savvy
and also want to be able to pay with their smartphones.

58% I will think more about whether I really

need the product.
40% I will investigate brands more
closely before buying them.

41%
53%
I will buy more well known brands.
17%

TOTAL
GEN Z 24%
DESIGN FOR THE FUTURE THE MOOD IN GERMANY 20
How
Market Analysis

brands can
use design
to future-
proof
themselves
21 2023
Inga Wolter Executive Creative Director Contact

Expert evaluation:
How brands can use design
to future-proof themselves
When people visit the supermarket, two forces are at play: On the one hand,
they're looking for familiar products they've been buying for years, so they know
they can't go wrong with them. On the other hand, they're looking for inspiration,
a break with their everyday routine, and the chance to find something new.

The question is: When do shoppers let their guard down and
succumb to the temptation of challenger brands? Our study
reveals that even well-established, successful brands are not
immune to the charms of new competitors. If they don't culti-
vate their brand image, familiar products can quickly become
boring. That's why they should continue to grow and evolve,
especially when business is good. This is particularly true be-
cause society's values are constantly in flux. Younger genera-
tions prioritize brands that take a clear stance on social issu-
es, and they are also more at home on digital channels. They
have a higher affinity for online shopping and mobile pay-
ments. But not only that: Gen Z often perceives startups born
from collaborations with influencers to be just as trustworthy
as established brands.
RADICAL CHANGE UNDER
A FAMILIAR LABEL
A glance at the rankings in our study in-
cludes reveals that brands like Veganz
and Oatly – which are clearly tailored to
a particular product segment and life-
style demographic – are performing quite Would you like to learn how design can help future-proof your
strongly. At the same time, it will be in- brand? Contact me for an analysis and presentation, with no
teresting to see whether Oatly, in parti- obligation.
cular, can grow beyond its core segment.
Can a brand with “oats” in its name mar-
ket other plant-based products without Inga Wolter,
forfeiting credibility? Executive Creative Director
inga.wolter@peter-schmidt-group.de

DESIGN FOR THE FUTURE HOW BRANDS CAN USE DESIGN TO FUTURE-PROOF THEMSELVES 22
 Design Wellbeing

Rügenwalder Mühle proves that this kind of “brand stretch” currently trending: Health and well-being, sustainability and
is not impossible. The traditional manufacturer of meat pro- purpose, digital experience, and safety and trust. Each of
ducts achieved success in a diametrically opposed market these topics can be expressed in various ways through design.
segment when it expanded its range to include vegan pro- Please contact our agency for a comprehensive analysis in-
ducts. Now the company is equally credible for both consumer cluding best practices and individual recommendations. In the
groups. meantime, we are pleased to include a few excerpts from our
findings here:
It's interesting to note that while sugary soft drinks are cur-
rently not living up to the expectations of those surveyed –
they come in last on the list – they are expected to play a larger
role in the future. Consumers apparently have faith in the in-
novative strength of established corporations like Coca-Cola

/01.
and Red Bull. But the undisputed front runner when it comes
to future-proof beverage brands is Sodastream (7% ahead of
the runner-up, and 16% above average). The brand embodies
a holistic concept that combines three aspects of importance
to consumers: sustainability, cost savings, and convenience. HEALTH AND WELLBEING

DESIGN AS A WAY TO CONVEY VALUES THAT IMPACT
PURCHASING DECISIONS
Design is a reflection of brand positioning and brand values,
and helps communicate them intuitively. And that's more im-
portant than ever, as a majority of those surveyed indicated
they plan to look more closely before making purchases in the
future (58% said “In the future I will think more about whether
I really need the product.”) But at the same time, they expect
brands to take on social responsibility (54%) – and they want
proof. There are visible way brands can use design to respond
to these expectations and underscore their relevance. In our
brand work we have ascertained five major themes that are
Rising food costs are currently one of the biggest problems
facing consumers (81%). At the same time, 55% are willing to
pay a premium for products they consider more healthy. This
aspect can be expressed using gentle pastel colors, but also
through minimalistic design that uses the performance codes
of functional food like Huel and Sproud, for example.
Design is a reflection of brand positioning and brand
values, and helps communicate them intuitively.

DESIGN FOR THE FUTURE HOW BRANDS CAN USE DESIGN TO FUTURE-PROOF THEMSELVES 23
Design Radiate Positivity Sustainability

/02.
SUSTAINABILITY AND PURPOSE

The days when all it took to signal sustainability was un-

treated paper and a few green design elements are definitely
long gone. We call the kind of colorful and pointedly optimistic
aesthetic employed by brands like Nucao and Tony's Choco-
lonely “Radiate Positivity.” But obviously hand-drawn or de-
liberately imperfect designs like those used by El Origen also
communicate the same values.

The days when all it took to

signal sustainability was untreated
paper and a few green design
elements are definitely long gone.

DESIGN FOR THE FUTURE HOW BRANDS CAN USE DESIGN TO FUTURE-PROOF THEMSELVES 24
Digital Experience Diversity Safety

/03. SAFETY AND TRUST

Sometimes, the right aesthetic evolution of a brand identity involves

DIGITAL EXPERIENCE a return to the past. Burger King and Dunkin' Donuts are examples
of brands whose retro look reminds consumer of the "good old days."
It's not only Generation Z that is tech-savvy. The Mutti and Barilla, on the other hand, demonstrate how to convey
entire population as a whole is adapting to the digi- quality and tradition with nostalgic typography, signatures and seals
tal world, with 72% saying they are willing to scan that signal the tried-and-true.

/05.
QR codes printed on supermarket products.
Gamification elements, emoticons, and design
styles reminiscent of user interfaces are becoming
more and more common, and designs created by
artificial intelligence are already being displayed in
retail stores.

/04.
DIVERSITY

It's no longer taboo to play around with your logo.

Brands like m&m's, Pringles and Fritz Kola display a
variety of faces and expressions. Visual references to
the region of origin help consumers understand intu-
itively where products are from. It's important to note,
however, that colors and patterns should be authenti-
cally derived from regional culture, and must not
resort to clichés.

DESIGN FOR THE FUTURE HOW BRANDS CAN USE DESIGN TO FUTURE-PROOF THEMSELVES 25
2023 Methodology
Methodology and credits
For the “Design for the Future 2023“
study we collaborated with the market research firm
Quantilope to conduct a representative survey of 5016
consumers on their thoughts and expectations about
brands.
We then examined 20 brands in each of five sectors in
more detail. The number of respondents was over 1000 in
each case. The "Generation Z" analysis included 969 re-
spondents aged 15 to 29. Here too, the results are repre-
sentative of the overall population of Germany.
The data were collected in the first quarter of 2023.
In the publication we show images of brands and pro-
ducts in order to substantiate design trends through
best practices. The motifs were provided by the re-
spective brands from freely accessible media archives
on their websites.
DESIGN FOR THE FUTURE
Credits
Page 23:
Sproud product packaging
Credit: https://besproud.com
Page 24:
El Origen product packaging (https://www.elorigenfood.de)
Credit: www.peter-schmidt-group.de
Tony’s Chocolonelys product packaging
Credit: https://tonyschocolonely.com/de/de/produktabbildungen
Nucao image HOW BRANDS CAN USE DESIGN TO FUTURE-PROOF THEMSELVES
Credit: https://www.the-nu-company.com/pages/presse
Page 25:
Chiquita product label
Credit: https://chiquitabrands.com/news/chiquita-spreads-joy-with-spotify-playlists/
Delta Cafés product packaging (https://www.deltacafes.com)
Credit: www.peter-schmidt-group.de
Barilla product packaging
Credit: https://www.barillagroup.com/en/press-room/photos
HOW BRANDS CAN USE DESIGN TO FUTURE-PROOF THEMSELVES 26
→
We look ↙
Market Analsysis White Paper //

forward to
hearing
from you!
PETER SCHMIDT GROUP
Study ABC-STRASSE 47 20354 HAMBURG

www.peter-schmidt-group.de
strategie@peter-schmidt-group.de +49 40 441804-0
28 2023