Dubai Chocolate Sparks a Pistachio Crisis

The rapid rise of Dubai chocolate has triggered a worldwide pistachio shortage, driving prices up by a third and straining global supplies.

The viral bars — a blend of pistachio cream, shredded pastry (kataifi), and milk chocolate — were introduced in 2021 by boutique Emirati chocolatier FIX. Initially a modest hit, they became a global phenomenon after a TikTok video posted in December 2023 racked up over 120 million views, sparking a wave of imitations.

As demand surged, pistachio kernel prices jumped from $7.65 to about $10.30 per pound, according to Giles Hacking of nut trader CG Hacking. "The pistachio world is basically tapped out at the moment," he said.

Retailers have struggled to keep up. Lindt’s Dubai-inspired chocolate retails at £10 for 145 grams in the UK — more than double the price of its regular bars — and some shops have started rationing purchases. Lindt and British supermarket Morrisons have even launched pistachio cream Easter eggs to tap into the trend.

The shortage follows an already difficult year for pistachio production. A disappointing U.S. harvest, combined with a higher-than-usual quality crop (yielding fewer cheaper, shell-free kernels), tightened supply just as demand exploded.

Iran, the world’s second-largest pistachio producer, has seen exports to the UAE soar — up 40% in the six months to March 2025 compared to the previous full year, according to Iran’s customs office.

"In 2023, supply exceeded demand, leading to lower prices and a boom in pistachio byproducts like butter and paste," said Behrooz Agah of Iran’s Pistachio Association. "That environment helped Dubai Chocolate gain traction globally."

Meanwhile, U.S. farmers are increasingly planting pistachio trees over almonds, but new orchards won't yield significant harvests until after September.

Chocolatiers are scrambling to keep up. "It feels like it came out of nowhere," said Charles Jandreau, general manager of Prestat Group, owner of luxury UK chocolate brands, noting difficulties in sourcing kataifi pastry.

The pistachio crisis comes on top of a global cocoa shortage, which has already driven cocoa prices to nearly triple due to extreme weather and disease. Chocolate producers have responded by shrinking bar sizes and adjusting recipes.

FIX, the originator of the viral bar — called “Can’t Get Knafeh of It” — has expressed concerns over imitators misleading customers. The company only sells its bars within the UAE and limits sales to two hours per day.

Still, competitors are racing to meet demand. “We are just overwhelmed,” said Johannes Läderach, CEO of Swiss chocolatier Läderach. "We launched Dubai chocolate a few months ago, and demand just keeps skyrocketing."

Source: Albayan Newspaper /FT

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