The Surge in Dubai-Style Chocolate Prices: What You Need to Know About the Global Shortage
In recent months, a viral phenomenon has swept across the globe: Dubai-style chocolate. Combining the flavors of traditional Arab dessert Knafeh with pistachios, this indulgent treat has sparked a worldwide craze, driving a sharp rise in demand. However, with this surge in popularity comes an unexpected consequence—rising prices and a global shortage of pistachios, a key ingredient in the sweet. The situation has left experts and consumers alike scrambling to understand the causes behind the price hike and what it means for the future of the confectionery industry.
The Rise of Dubai-Style Chocolate
Dubai-style chocolate first caught attention in 2021 when a dessert bar, Can’t Get Knafeh of It, was launched by Dubai chocolatier FIX Dessert. The combination of creamy chocolate and a filling of Knafeh, an Arabic dessert made from cheese, and crunchy pistachios proved irresistible to sweet-toothed fans. However, it wasn’t until the chocolate went viral on TikTok that it exploded in popularity, capturing the imagination of chocolate lovers worldwide.
As social media influencers and food bloggers shared their experiences with the chocolate, its fame quickly spread beyond Dubai to markets across the globe. The impact of the viral sensation was particularly felt in the UK, where major retailers like M&S, Lidl, and Morrisons introduced their own versions of Dubai-style chocolate.
Waitrose, another UK supermarket, joined the trend in March 2023, launching Lindt Dubai-style chocolate in select stores. The success was immediate—so much so that the store had to impose a two-bar per person limit due to the frenzied demand. The bars quickly flew off the shelves, and many stores found themselves unable to restock fast enough to keep up with the frenzy.
The Pistachio Shortage: How Dubai-Style Chocolate Sparked a Global Crisis
While the success of Dubai-style chocolate may seem like a win for the confectionery world, it has had serious consequences for the pistachio supply chain. The surge in demand for chocolate bars featuring pistachios has caused a significant shortage of the green nut, which in turn has driven prices to new heights.
Pistachio prices had already been on the rise due to various factors, but the combination of a viral chocolate trend and an unusually poor pistachio harvest in the U.S. has created a perfect storm. Pistachio kernels, the heart of many snacks and treats, have surged in price, jumping from $7.65 per pound to $10.30 in the span of just one year. This price increase has sparked concerns among chocolate makers, particularly those who rely on pistachios as a primary ingredient.
The Impact of the U.S. Pistachio Harvest
The U.S. is the largest producer and exporter of pistachios in the world, accounting for over 40% of global supply. However, the U.S. harvest in 2023 was not as fruitful as expected. Not only was the quantity of pistachios lower, but the quality of the nuts was also subpar, particularly in terms of the lower-grade kernels that are typically used in products like chocolate.
According to Giles Hacking, a nut trader at GC Hacking, the pistachio industry is currently “tapped out.” The combination of a smaller harvest and heightened competition for pistachios, driven by the viral chocolate trend, has left many buyers unable to secure the supply they need. This is further complicated by the fact that higher-quality pistachios, which are often sold as whole nuts, are not as commonly used in products like chocolate.
The Role of Iran in the Pistachio Shortage
Iran, the world’s second-largest producer of pistachios, has also been affected by the growing demand. In the six months leading up to March 2025, Iran’s pistachio exports to the UAE increased by 40%, further depleting the global supply. This marks a sharp contrast to 2023, when pistachio supply outstripped demand, and excess stock was used to create byproducts like pistachio butter, oil, and paste.
Behrooz Agah, a spokesperson for Iran’s Pistachio Association, noted that the global pistachio market had undergone a reversal in fortunes. Whereas there was once an oversupply, the increasing demand for pistachios from Dubai-style chocolate makers has left the market in a state of crisis.
The Impact on Chocolate Makers and Retailers
The pistachio shortage has had significant ramifications for chocolate manufacturers. Charles Jandreau, general manager of Prestat Group, a UK-based luxury chocolate brand, explained that the Dubai-style chocolate craze “came out of nowhere” and caught many chocolatiers off guard. Prestat, known for its high-quality chocolate products, found itself struggling to secure enough pistachios for its own offerings.
As the competition for pistachios intensifies, smaller chocolatiers and artisanal brands may find it increasingly difficult to afford the premium prices for the nuts. Larger brands, like Lindt, may have more purchasing power but still face challenges in maintaining the supply chain. Retailers are also scrambling to keep up with demand, with some imposing purchasing limits to prevent hoarding.
The Role of Social Media in the Chocolate Craze
The role of social media, particularly platforms like TikTok, in driving the Dubai-style chocolate craze cannot be overstated. The chocolate bars went viral through viral videos and posts, making them the latest must-try food trend. This kind of rapid, grassroots marketing has created a situation where a niche product is suddenly in high demand worldwide.
Consumers, who once may have been content with traditional chocolate bars, are now clamoring for the unique flavors and textures of Dubai-style chocolate. This has led to an explosion of similar products flooding the market, all vying for a piece of the viral trend.
The Future of Dubai-Style Chocolate
Despite the pistachio shortage and rising prices, the demand for Dubai-style chocolate shows no signs of slowing down. Retailers are rushing to stock more of the viral treat, and chocolatiers are experimenting with new variations and recipes to keep up with consumer interest.
Marks and Spencer, for example, is set to launch its own version of Dubai-style chocolate on April 23, 2024, giving fans yet another opportunity to get their hands on the coveted bars. However, with prices starting at £1.25 per bar, consumers may have to adjust to the reality of paying more for the trend.
For chocolate lovers, the message is clear: the era of affordable Dubai-style chocolate may be coming to an end, at least for the time being. As pistachio prices continue to rise and supply remains uncertain, the cost of this indulgent treat is likely to keep climbing.
In the long term, the Dubai-style chocolate trend may see a shift in consumer behavior. Will the market demand for pistachio-flavored treats diminish once the novelty of the trend fades, or will the obsession with these chocolates become a mainstay in the confectionery industry? Only time will tell.
Conclusion: A Sweet Trend with Bitter Consequences
The viral success of Dubai-style chocolate has ushered in an era of indulgence for chocolate lovers, but it has also led to unintended consequences. The shortage of pistachios, driven by both the viral chocolate trend and an underwhelming harvest, has sparked concerns about the sustainability of this phenomenon.
While chocolate makers scramble to secure supply and retailers impose purchase limits, consumers are left facing the reality of rising prices and the possibility of future shortages. As the trend continues to captivate food lovers worldwide, it remains to be seen how long the Dubai-style chocolate craze will last and what impact it will have on the broader confectionery market.
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