As world cocoa costs soared to file highs in 2024, the UAE’s chocolate market is dealing with each strain and promise — pushed by evolving tastes, viral tendencies, and rising enter prices.
The UAE chocolate market, valued at an estimated USD $736 million in 2024, is projected to develop steadily over the following decade. Nevertheless, rising commodity costs are beginning to chew. World cocoa costs surpassed $12,500 per metric ton in December, largely because of poor harvests in West Africa, a key sourcing area. This spike is already pushing producers throughout the UAE to reevaluate pricing methods, product codecs, and ingredient sourcing.
Over an extended interval, costs have risen considerably. From March 2024 to January 2025, cocoa costs soared as a lot as 93%, possible flowing by means of into this yr’s chocolate costs and since March 2023, costs have risen almost 200%.
The “Dubai Chocolate” Phenomenon
Some of the notable developments in early 2025 is the explosive reputation of what’s being dubbed “Dubai chocolate” — a pistachio-filled, tahini-rich chocolate bar that blends regional flavours with worldwide indulgence. Born from a neighborhood chocolatier, the product went viral on social media earlier this yr, prompting lengthy traces at retailers and strict buy limits at high-end grocery chains overseas.
The rise of Dubai chocolate highlights a bigger pattern within the UAE: customers are more and more gravitating in the direction of premium, experience-driven merchandise that replicate cultural identification whereas delivering world attraction. This shift could supply a buffer towards price-sensitive demand, notably within the luxurious gifting section and amongst youthful demographics in search of Instagrammable treats.
Outlook for Chocolate
Cocoa costs have come down to this point in 2025 after final yr’s file highs. This transfer is being pushed by elevated manufacturing forecasts for the yr forward, which might drive a surplus and, subsequently, easing provide issues. However, exterior pressures proceed to construct. New worldwide commerce duties — together with proposed tariffs on cocoa imports from main African producers — could not directly influence UAE-based producers who depend on world provide chains. Sustainability laws from key buying and selling companions are additionally anticipated to extend compliance prices over time.
Regardless of these challenges, native and world manufacturers working within the UAE are exhibiting resilience. Many are specializing in premiumisation, smaller pack sizes, and flavour innovation to keep up profitability. For the buyer, this implies “shrinkflation.” To fight rising prices, chocolate producers are lowering the dimensions of their merchandise somewhat than elevating costs immediately. Sure, which means your favorite sweets are getting smaller, however the price ticket isn’t. This helps mitigate the influence of rising cocoa costs with out the quick backlash of seen value hikes. This usually means customers pay extra per gram of chocolate.
Demand for chocolate is more likely to keep robust, particularly throughout festive and gifting seasons like Eid and Diwali, which means the outlook for the UAE chocolate market stays stable. However, prices will stay unsure. Producers that adapt rapidly, by leveraging native preferences, sourcing flexibly, and investing in standout product design, are more likely to preserve momentum in a market the place custom and pattern now go hand in hand.
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