UAE’s chocolate industry adapts to global cocoa crisis with local innovation and steady demand
- Last updated: July 16, 2025 | 00:16
As global cocoa prices continue to fluctuate following record highs in 2024, the UAE’s chocolate market is showing resilience through product innovation, premiumisation, and evolving consumer preferences — including a growing appetite for locally inspired confections.
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.
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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.
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