High-end chocolate companies, like Valrhona who created this product, are noticing an increase in demand for first-class quality products High-end chocolate companies, like Valrhona who created this product, are noticing an increase in demand for first-class quality products

Supply and demand
Rapid market expansion has led to the introduction of many high-end products, striving to differentiate themselves in the eyes of the Middle East’s brand-conscious consumer.

However, the majority of quality chocolate is imported from key international markets, which exposes the prices to fluctuations in commodity prices. It has therefore become difficult for many chocolate manufacturers and distributors in the region to balance price and quality – especially in the current economic climate.

“It’s certainly true that the Middle East has seen an unprecedented demand for chocolate in the last decade, but since 2008, the UAE in particular has experienced both an influx of chocolatiers and an economic downturn,” says Gavoa House of Chocolate managing partner, George Tannous.

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“This has naturally led to increased competition and has affected prices in the chocolate market. Ultimately, this has resulted in quality issues.
There are a significant number of chocolatiers in the region using cheap chocolate compound at a fraction of the price of real chocolate and then supplying the market at ridiculously low prices. This makes it very difficult for quality chocolatiers like us and I think there is a need for tighter regulation in this area.”

As the market grows, chocolate suppliers both old and new have fought to make their products stand out from the competition by introducing more variety. New flavours and new market sources have put an increased strain on the chocolate supply chain to the region.

In some areas, the supply chain is still maturing and sometimes struggles to keep pace with the region’s insatiable appetite for chocolate.

“The importers and distributors are not at all consistent with in terms of availability of products,” says Swiss International Chocolates managing director, Daniel Hutmacher.

“They change products without notification, thus creating havoc with our recipes, which are all carefully designed to be a delicate balance of ingredients.”