UAE's chocolate industry adapts to global cocoa crisis with local innovation and steady demand
Valued at an estimated USD 736 million in 2024, the UAE chocolate market is projected to grow steadily despite supply chain disruptions. Cocoa prices soared by nearly 93% between March 2024 and January 2025, with prices peaking above USD 12,500 per metric ton in late 2024. These surges, driven by poor harvests in West Africa, have forced producers to adjust pricing strategies and explore alternative sourcing.
Local Trend Goes Global: 'Dubai Chocolate' Gains Worldwide Attention
Among the most prominent developments in early 2025 is the viral success of 'Dubai chocolate' — a pistachio and tahini-infused chocolate bar developed by a Dubai-based chocolatier. Combining Middle Eastern flavours with premium quality, the product has captivated consumers globally, leading to long lines in the UAE and restricted purchases at international retailers.
This trend reflects a broader consumer shift towards experience-driven and culturally resonant chocolate offerings, particularly within the luxury gifting segment and among younger demographics seeking unique, shareable treats.
Navigating Market Headwinds
Although cocoa prices have begun to ease in 2025 due to improved harvest projections, uncertainties remain. Proposed tariffs on cocoa imports and evolving sustainability regulations from key trading partners may increase operating costs for UAE-based manufacturers in the months ahead.
In response, chocolate brands are implementing strategic changes to maintain profitability. These include 'shrinkflation' — reducing portion sizes while keeping price points unchanged — as well as investing in smaller pack sizes and new flavour formats. These measures aim to soften the consumer impact while maintaining brand value and shelf appeal.
Positive Outlook Despite Challenges
Chocolate consumption in the UAE continues to rise during festive seasons such as Eid and Diwali, supporting a favourable demand outlook. Market analysts believe that companies that prioritise flexibility, localised innovation, and premium design will continue to succeed in a competitive and dynamic market.
As tradition blends with trend, the UAE's chocolate industry remains well-positioned to weather global volatility while meeting the tastes of a discerning and diverse consumer base.
Disclaimer
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient's investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.
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