Dunkin' embraces growing matcha trendDunkin' embraces growing matcha trend

Specialty drinks, like espressos and teas, are a growth segment for Dunkin'. The latest menu item from the Canton, Mass.-based brand is a matcha latte, served hot, iced or frozen with a choice of milk. It's available starting Feb. 26. The brand is promoting the beverage as an alternative to coffee drinks and a way to "refresh and re-energize." Dunkin’s matcha lattes are made with sweetened matcha green tea powder.

Matcha is associated with both tea and wellness trends, as the beverage has health benefits and gives drinkers a mellower caffeine boost. According to market research firm Grand View Research, the global matcha market was valued at $2.62 billion in 2016 and is expected to grow to $5.07 billion by 2025.

"Whether you're an avid matcha latte drinker or are trying it for the first time, guests can expect an authentic, quality experience with Dunkin's Matcha Lattes," said Paul Racicot, director of global culinary innovation at Dunkin' Brands, in a news statement. "We're excited to offer millions of Americans a delicious new way to run on Dunkin' that perfectly matches the iconic brightness and energy that they know and love from our brand."

Specialty beverages are doing well for Dunkin' as the brand finds new ways to “democratize” trends and compete in the beverage space. During the brand's latest earnings call, Dunkin' executives said that espresso sales grew by nearly 40% year-over-year, with those beverages representing 10% of sales. 

Related:Dunkin’ announces oat milk lattes days after Starbucks

Dunkin’ recently announced it was adding oat milk to its menu days after Starbucks made a similar announcement. Scott Murphy, U.S. Dunkin' president, has also said the brand is exploring single-origin coffee, a staple of high-end coffee shops. As for matcha, Starbucks has been serving it for years. 

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