Viral Dubai Chocolate Craze Drives Pistachio Costs Up By Dh10 Per Kg In Two Months

Pistachio prices in Dubai have seen a slight increase in recent weeks, and traders believe the reason is linked to the growing global craze for Dubai's viral Kunafa pistachio chocolate.

Khaleej Times visited the Old Souk in Deira, one of the city's oldest and busiest dry fruit markets, to find out why pistachios are becoming more expensive.

Abdullah Asad, a local trader of herbs, dry fruits, and nuts, said that he has been seeing a rise in pistachio prices for the last few months.“For the past one and a half to two months, we have noticed regular price hikes, especially for pistachios coming from Iran. When we asked our suppliers, they told us it's due to high demand. People are buying more than usual, and that's pushing the prices up.”

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But still it did not strike Asad's mind until a tourist came to his shop asking for the viral chocolate.“I figured it out then. The tourist, who was German, told me that the chocolate is available in her hometown, but she wanted to try out the authentic one from Dubai,” said Asad.

He added that Iranian pistachios have gone up by Dh8 per kilogram compared to February or mid-March.“Right now, we are paying a lot more for the same product. This is mainly because of a sudden rise in bulk buying. Regular customers, as well as new buyers from the sweets and chocolate industry, are buying in larger quantities,” added Abdullah.

While pistachios from the US have also seen a price increase, it's been less drastic, around Dh2 to Dh3 per kilogram, depending on the trader.

In February, pistachio prices in Dubai Old Souk started at around Dh32 per kilogram. By March, they had climbed to approximately Dh38, and currently, prices are hovering between Dh40 to Dh45 per kilogram, depending on the quality of the nuts.

Traders said that the pistachio supply has always been steady in the UAE, thanks to its long shelf life and year-round availability. So this sudden increase in prices came as a surprise to many of them.“We rarely see fluctuations in pistachio pricing. The increase this time was surprising,” said Abdul Hadi, owner at Yathrib Dry Fruits.

“Recently I found out the reason for the price increase is this new Dubai Kunafa pistachio chocolate and also the pistachio paste that is loved by residents, which has gone viral not just in the Middle East, but also around the world,” said Abdul Hadi.

Hadi explained that they used to supply pistachios to a few small makers of this chocolate. But over the past six months, demand has exploded.“These chocolate makers have now scaled up their production and are buying directly from big suppliers and manufacturers in Iran. That's led to a shortage even at the supplier level, which is causing prices to go up,” he said.

According to him, pistachios from Iran are preferred for the viral dessert because they are slightly cheaper than US varieties and offer better taste and texture for sweets.

“If this chocolate continues to gain popularity across the world, we will definitely see pistachio prices rise more,” Hadi added.

Currently, in the retail market, customers can expect to pay Dh5 to Dh10 more per kilogram of pistachios, depending on the quality and origin.

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