The UAE chocolate market, valued at $736 million in 2024, continues on a growth trajectory despite facing unprecedented challenges from global cocoa price volatility, a new eToro report finds.
Prices surpassed $12,500 per metric ton in December 2024, representing a 93 per cent increase from March 2024 to January 2025, and nearly 200 per cent since March 2023.
“While the UAE chocolate sector continues to thrive, manufacturers are under significant pressure to adapt pricing and product strategies in response to rising commodity costs and market fluctuations,” Josh Gilbert, Market Analyst at eToro said.
Dubai chocolate drives global trends
The price surge stems from poor harvests in West Africa, a primary cocoa-sourcing region, forcing manufacturers to reconsider pricing strategies and production methods to maintain profitability.
A new product known as Dubai chocolate has emerged as a market highlight. This locally produced pistachio-filled, tahini-rich chocolate bar blends regional flavours with international appeal, gaining viral status on social media in early 2025.
The popularity has led to purchase limits at high-end grocery chains abroad and queues at UAE retailers.
The trend reflects a broader market shift towards premium products, particularly among younger consumers seeking unique, social media-worthy treats.
The fusion of Middle Eastern ingredients with chocolate has helped distinguish UAE products in the global market.
Though cocoa prices have decreased in 2025 due to improved production forecasts, uncertainties remain.
Potential tariffs on African cocoa imports and new sustainability regulations from trading partners could impact UAE producers who depend on global supply chains.
UAE chocolate market thrives
In response, chocolate brands are focusing on premiumisation, flavour innovation, and smaller product formats—a strategy known as ‘shrinkflation’ where products decrease in size while prices remain stable or increase.
Despite these challenges, chocolate demand in the UAE is expected to remain robust, particularly during Eid and Diwali celebrations.
“The combination of local preferences, flexible sourcing, and innovative product design ensures that chocolate manufacturers in the UAE will likely continue to thrive in a market where tradition and trend go hand in hand. Manufacturers who adapt quickly to changing trends, embrace local tastes, and manage cost pressures will remain well-positioned for long-term success,” Gilbert added.
While the UAE chocolate market faces current challenges from global price fluctuations, industry adaptation through innovation and responsiveness to local tastes positions it for continued growth.
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