Dubai Chocolate Craze Inflates Pistachio Prices

The Dubai Chocolate Craze Inflates Pistachio Prices: Up Dh10 per Kilo

In recent months, pistachio prices in Dubai have noticeably increased, and traders attribute this to a global trend: the rapidly growing demand for Dubai's Kunafa pistachio chocolate. This confection, made from the Middle Eastern dessert and crunchy nuts, has become popular not only in the region but globally, which is now impacting the market for raw materials.

What Happened to Pistachio Prices?

According to traders at Deira's Old Souk—one of the city's oldest and busiest fruit markets—the price of Iranian pistachios has increased by Dh8–10 dirham per kilo over the last two months. In February, prices hovered around Dh32–35 per kilo, but by March they jumped to Dh38, and now the price can be as high as Dh40–45 per kilo depending on quality.

A local trader mentioned that initially, there was confusion over the price increase until a German tourist asked about the "famous Dubai pistachio chocolate." It then became clear that the viral dessert on social media had driven the demand up.

Why Specifically Iranian Pistachios?

The makers of Kunafa pistachio chocolate primarily use Iranian pistachios because they are cheaper than the American variety and better suited in taste and texture for sweets. While the price of Iranian pistachios has grown by Dh8–10 dirham per kilo, the American version is only Dh2–3 dirham more expensive.

Traders say the issue doesn't stem from a lack of supply but from unexpectedly increased wholesale purchases. Instead of small-scale chocolate makers, larger manufacturers are now buying directly from Iranian suppliers, causing a bottleneck in the market.

"If This Continues, It Will Get More Expensive"

A local dry goods trader noted that pistachio prices are usually stable due to their long shelf life and year-round availability. Many were therefore surprised by the recent price hike.

"If the chocolate's popularity continues to grow worldwide, pistachio prices will keep rising," remarked a market participant. Currently, retail customers might pay Dh5–10 more per kilo than a few months ago.

The Dubai Sweet Transforming the Nut Market

The story is a clear example of how a trend can reshape an entire industry. The confectionery caught on through social media not only brings Dubai's pastry chefs into the limelight but is now also causing significant changes for pistachio producers and traders.

If the Kunafa pistachio chocolate frenzy continues to spread, not only the price of nuts but possibly other raw materials' markets could be affected. For now, however, locals and tourists alike happily fill their baskets with the crispy, green gold—even if it costs a bit more than it used to.

(Source: Based on prices at Dubai Old Souk.)