Food & Shopping in Iceland
Iceland offers a distinct experience for travelers who enjoy good food and meaningful shopping. The country’s cuisine is shaped by its climate, geography, and long-standing traditions. Menus rely heavily on fresh fish, free-range lamb, dairy, and root vegetables. Chefs often focus on ingredient quality rather than complex preparations. Simple, clean flavors are highly valued, and seasonal menus are common.
Reykjavík has the widest selection of places to eat, from casual cafes to fine dining. Outside the capital, travelers can still find cozy, well-run restaurants and family-owned establishments that serve hearty meals made with local produce. Portions are usually generous, and staff are friendly and knowledgeable.
Shopping in Iceland highlights the nation’s emphasis on design, craftsmanship, and sustainability. Wool products like sweaters, hats, and blankets are especially popular, made from warm, durable Icelandic sheep wool. Homeware, jewelry, and skincare products often use natural materials like lava stone, glacial clay, and seaberry oil.
Many shops stock goods created by small-scale designers or craftspeople. It’s common to find artist cooperatives, local bookstores, and weekend markets that feature work by regional makers. While prices can be high, the quality, originality, and ethical production often justify the cost.
Rather than sprawling malls, shopping in Iceland takes place in walkable streets lined with boutiques and independent stores. Both food and shopping reflect the values of Icelandic culture—simplicity, care, and a strong connection to the land. Spending time exploring these areas adds depth to your trip and offers a glimpse into daily life in this unique island nation.
Recommended Tours in Iceland
Opening Hours in Iceland
Most shops in Iceland open around 10:00 am and close by 6:00 pm on weekdays. Saturdays often see shorter hours, with many stores closing by 4:00 pm. On Sundays, most shops outside central tourist areas remain closed. Supermarkets and some souvenir shops may have extended hours, especially in Reykjavik and popular travel hubs.
Dining Hours in Iceland
Lunch is usually served from 11:30 am to 2:00 pm, with many kitchens closing in the afternoon. Dinner service typically begins around 6:00 pm and continues until 10:00 pm in Reykjavik. Smaller towns may end dinner service earlier. Booking a table is recommended during busy times, weekends, or national holidays to avoid long waits.
Paying in Iceland
Credit and debit cards are accepted almost everywhere, including taxis and remote guesthouses. Contactless payment is widespread, and cash is rarely necessary. ATMs are readily available in most towns. Tipping is not expected; service charges are included. If you feel service was exceptional, rounding up the bill is appreciated but completely optional for visitors.
Tax-Free Shopping in Iceland
Travelers living outside the EU can claim a VAT refund on purchases over ISK 6,000 made at participating shops. Ask for a tax-free form when buying items. To receive your refund, present the completed form, receipts, and purchased goods at the airport’s tax refund counter before leaving Iceland. Processing times can vary, so allow extra time.
What to Buy in Iceland
Shopping in Iceland offers a chance to bring home high-quality items that reflect the country’s culture and environment. One of the most iconic purchases is the Lopapeysa, the traditional Icelandic wool sweater. These garments are warm, water-resistant, and often hand-knit using native sheep wool. Hats, scarves, mittens, and blankets made from the same wool are also widely available.
Other popular goods include natural skincare products made with glacial water, volcanic minerals, and seaweed. These are often produced in small batches and sold in pharmacies or boutique shops. Sea salt, dried fish, and berry preserves are lightweight and travel-friendly edible souvenirs.
Iceland has a growing design and art scene, and you’ll find ceramics, jewelry, and prints made by local artists. Many items are nature-inspired, using local stones, driftwood, or lava rock. Bookstores carry Icelandic literature in English translation, as well as music by local bands on vinyl or CD.
Avoid mass-produced souvenirs where possible. Small shops, weekend markets, and artist collectives are the best places to find meaningful gifts and well-made items. By choosing thoughtfully, you support local makers and take home something uniquely tied to your Icelandic experience.
Frequently Asked Questions
Is food in Iceland expensive?
Yes, food can be pricey due to import costs and high local standards, but the quality is excellent and often worth the splurge.
Are vegetarian or vegan options available?
Yes! Especially in Reykjavík, you’ll find many restaurants with vegetarian and vegan dishes clearly marked on the menu.
Can I drink the tap water in Iceland?
Absolutely. Iceland’s tap water is some of the purest in the world—fresh, clean, and completely safe to drink.
Are Icelandic wool products really warm?
Yes. Lopapeysa sweaters are made from durable, insulating wool perfect for Iceland’s variable climate.
Where can I find authentic Icelandic souvenirs?
Visit local design stores, farmers’ markets, or official Icelandic brands in Reykjavík for authentic, high-quality souvenirs.
Our local expert in Iceland
How Finest Journeys Improves Your Food & Shopping Experience in Iceland
We tailor your itinerary to include authentic culinary stops, local markets, and top artisan shops. With our expert guides, you gain insider access to Iceland’s best flavors and finds – beyond the tourist trail.