Roula Khalaf, the Editor of the Financial Times, shares her insights through a weekly newsletter, highlighting the fascinating developments in the culinary world, particularly the remarkable rise of chocolate infused with pistachios from Dubai. This burgeoning trend has ignited a global shortage of pistachios, driving prices to unprecedented heights.

The story begins with the creation of a unique chocolate bar by the Emirati chocolatier FIX, which launched its product back in 2021. This confectionery masterpiece combines rich pistachio cream, delicate shredded pastry, and smooth milk chocolate. Initially, the chocolate garnered modest attention, until a viral TikTok video surfaced in December 2023, propelling the bars into the limelight and transforming them into a global sensation. The clip has since amassed an astounding 120 million views, sparking a worldwide frenzy not just for FIX's offering, but also for pistachio chocolate in general, leading to a plethora of imitation products flooding the market.

As demand surged, the price of pistachio kernels skyrocketed, jumping from $7.65 per pound a year ago to around $10.30 per pound today. Giles Hacking, a trader with CG Hacking, emphasizes the dire state of the pistachio market, stating, The pistachio world is basically tapped out at the moment. The meteoric rise in prices has left consumers grappling with the reality that these chocolate bars do not come cheap. For instance, Lindt's Dubai-themed chocolate retails at a steep 10 for just 145 grams in the UKmore than double the price of their other chocolate offerings. As a result, some retailers have even implemented limits on the number of bars each customer can purchase, while major brands like Lindt and British supermarket Wm Morrison have capitalized on the trend by launching pistachio cream Easter eggs.

The context surrounding this pistachio supply crisis is critical. The situation has been exacerbated by a disappointing harvest in the United States, which is the leading exporter of pistachios. Farmers faced challenges that led to a reduction in the yield of high-quality, shell-free kernels that are typically used in chocolate production. Hacking notes, There wasnt much in supply, so when Dubai chocolate comes along, and chocolatiers are buying up all the kernels they get their hands on... that leaves the rest of the world short.

Interestingly, Iran, the worlds second-largest producer of pistachios, has ramped up its exports to the UAE. In the six months leading up to March 2025, Iran exported 40 percent more pistachios to the UAE compared to the entirety of the previous year, according to data from Irans customs office. This pivot towards increased exports indicates a strategic response to global demand but also highlights the challenges faced by other regions.

Only last year, the global pistachio market was in a state of surplus, which led to a price drop and the availability of various pistachio byproducts such as butter, oil, and paste. Behrooz Agah, a board member of Irans pistachio association, recalls that the combination of supply gluts and the introduction of FIX's product coincided with a growing interest in pistachio-based foods, which have now surged in popularity.

In the United States, California farmers have begun transitioning from almond cultivation to pistachios due to the latters more favorable market conditions. However, this shift will not yield immediate results as the newly planted pistachio trees will not produce nuts until the following year's harvest in September. In the meantime, chocolatiers are struggling to keep up with the soaring demand for the cream-filled bars.

Charles Jandreau, the general manager of Prestat Group, which operates luxury chocolate brands in the UK, shares his perspective: It feels like it came out of nowhere, and suddenly you see it in every corner shop. He also expressed the challenges faced in sourcing kataifi, the shredded Middle Eastern pastry integral to the chocolate bars.

Adding to the complexity of the market, chocolate lovers have recently been grappling with a cocoa supply crisis that has seen prices nearly triple in 2024. Factors such as extreme weather and crop diseases have severely impacted cocoa harvests, forcing producers to rethink their offerings and sell smaller bars with adjusted recipes that use less cocoa.

FIX, which has named its original viral chocolate bar Cant Get Knafeh of It in homage to a beloved traditional Arab dessert, expressed concern over the impact of its viral success. While they celebrate having sparked a chocolate movement, they are wary of potential exploitation of their brand by competitors. Notably, FIX restricts the sale of its bars to just two hours a day and does not distribute them outside the UAE.

Despite these challenges, competitors are pushing forward. Johannes Lderach, CEO of the Swiss chocolatier Lderach, commented on the overwhelming demand for Dubai chocolate, stating, Weve launched them a few months ago, and its just not stopping, its just going through the roof. This sentiment encapsulates the excitement and urgency within the chocolate industry as it adapts to the new landscape shaped by the Dubai chocolate craze.