Iceland Souvenirs: The 15 Best Things to Buy in Iceland

After years of shopping these same stores and markets, we'd tell you to aim for souvenirs you'll keep using, not the ones that end up in a drawer. Think about the afterlife of each gift: something to wear, cook with, read, or display. Most pack easily, though a couple, like fish and full-strength alcohol, come with rules on where to buy and how to carry them home.

QUICK FACTS

• Most popular souvenir: the lopapeysa, Iceland's traditional wool sweater.
• Best value gifts: chocolate, licorice, and sea salt from a supermarket like Bónus.
• Boldest bottle: Brennivín, a caraway-flavored spirit nicknamed Black Death.
• Rarest craft: fish-leather goods, tanned in Sauðárkrókur and used by global fashion houses.
• Buy alcohol at: Vínbúðin state stores or the Keflavík Duty Free, not supermarkets.
• Skip: mass-produced puffin trinkets and anything made from wild birds or marine mammals.

All 15 picks side by side, with a rough starting price and where each is sold. Prices are approximate as of July 2026 and vary by maker and shop.

Food, candy, and beer are the cheap wins, most under 1,000 ISK ($8 / €7), while the lopapeysa, sheepskin, spirits, and design are where prices climb and differ most from one shop to the next. The latter buys are also where quality and authenticity are least consistent, so they reward a closer look before you spend.

Choose one lasting keepsake and a few consumables you'll finish. For most people that's the lopapeysa, the piece to keep for yourself. Match the rest to the recipient: chocolate or licorice for coworkers, skincare or a bottle of Brennivín for a treat, and jewelry or fish leather when the gift should feel like an occasion

A lot of the wool sold to visitors is machine-made or knitted abroad, so the genuine article, hand-knit from Icelandic wool, is the one that holds up. Prices range from a few hundred ISK for a ball of yarn to tens of thousands for a sweater.

The lopapeysa is Iceland's traditional yoke-patterned wool sweater, knit from lopi. The yarn pairs a soft, insulating inner fiber (þel) with a coarse, water-repellent outer fiber (tog), so it stays warm even in damp weather. The classic version keeps to natural sheep shades of white, gray, black, and brown, while modern ones add brighter dyed colors. You'll find it as a pullover, cardigan, or zip-up, and our Icelandic wool sweaters page covers styling and care.

If a full sweater is out of budget, Icelandic wool also comes as hats, socks, scarves, blankets, and yarn. Knitters can buy lopi yarn by the ball and make their own at home, often found at the Handknitting Association or other wool shops. Lopi can feel scratchy against bare skin, so many people wear it over a layer.

The country’s food and drink range from pocket-change candy to a premium bottle of Brennivín or Icelandic gin. Supermarkets like Bónus and Krónan are far cheaper than gift shops for anything edible.

Icelandic chocolate and licorice are the go-to edible souvenirs, with Nói Síríus and Omnom leading the way. Nói Síríus is behind the Síríus milk chocolate bars and Nóa Kropp, chocolate-covered puffed corn, while Omnom makes small-batch bean-to-bar chocolate in Reykjavík. Icelandic licorice (lakkrís) is a national obsession, salted or chocolate-coated, and one to try even if you think you don't like it.

Flaky sea salt is light and mineral-rich. Saltverk and Norður are the two main local producers, both using geothermal heat in the Westfjords. You'll find plain flakes plus flavors like licorice, Arctic thyme, and birch-smoked.

Harðfiskur, Iceland's dried fish, is the practical food to carry home, shelf-stable and high in protein so it survives a suitcase without spoiling. The strips are cod, haddock, or wolffish, eaten with butter, and they travel far better than anything frozen. Smoked salmon and Arctic char are sold vacuum-packed too. Animal-product import rules vary by country, so confirm what your destination allows before you pack it.

Brennivín, Iceland's signature spirit, is a caraway-flavored aquavit by Ölgerðin, nicknamed Black Death (Svarti dauði). Unlike vodka, the caraway gives it a savory, herbal flavor, often compared to fresh rye bread. Iceland's gins, whisky, and liqueurs are worth a look too.  Ólafsson and Vor gins use foraged Arctic botanicals, Eimverk's Flóki is a single malt from Icelandic barley, and Björk is a birch liqueur from Foss Distillery. You can buy spirits only at Vínbúðin, the state stores, or the Keflavík Duty Free, which is cheaper. Vínbúðin keeps limited hours and closes on Sundays, with the smallest rural stores open only a few hours a day.

Craft beer is the lighter, lower-cost option, with Einstök and Kaldi among the names to look for. The brewing scene has grown rapidly since beer was legalized in 1989, and Einstök, brewed in Akureyri, is the most widely exported. Full-strength beer follows the same rule as spirits, while supermarkets stock only low-alcohol versions.

Compact and giftable, the country's skincare is built around geothermal and Arctic ingredients. The Silica Mud Mask at the Blue Lagoon is a signature buy, made from the white silica that gives the water its milky-blue color. Bioeffect, founded in 2010 by three Icelandic scientists, produces a well-known EGF serum, with the skin-renewing protein derived from barley grown in a geothermal greenhouse. Sóley Organics, created by actress Sóley Elíasdóttir, draws on her family's herbalist heritage and uses wild Icelandic herbs. Travel sizes are handy for several small presents, and all three turn up around Reykjavík and at the Keflavík Duty Free.

Beyond food and wool, these souvenirs stand apart, spanning jewelry, fish leather, books, music, and Christmas figures. Most are made or written by someone you can name.

Jewelry is a small, durable pick, usually silver, handmade by local designers and often set with black lava rock. Many pieces echo the landscape, from basalt columns to volcanic stone. Downtown studios and shops carry ceramics and prints, and the Kolaportið weekend flea market sells jewelry and crafts straight from the stall.

Fish leather is Iceland's most unusual craft, tanned from salmon and wolffish skin that would otherwise be waste. Sauðárkrókur is home to Europe's only fish-leather tannery, whose leather has reached fashion houses like Dior and Prada. A wallet or accessory in fish leather is a rare find. Long-haired Icelandic sheepskin comes from the same use-everything tradition and makes a warm, distinctive throw or rug, sold in shops around the country.

Books and music are distinctly local, from a country that reads more per head than almost anywhere. Translated novels and sagas are the standouts, and learning about the best Icelandic authors is a good place to begin. The music scene punches above its weight too, from Björk to Sigur Rós, and record shops like 12 Tónar sell vinyl and CDs by local artists you won't find easily at home.

For a Christmas keepsake with real local roots, look for the thirteen Yule Lads (jólasveinar), Iceland's mischievous holiday figures, sold as ornaments or books. Puffins are everywhere too, sold as soft toys in the souvenir shops.

Steer clear of products made from wild animals, and check that anything labeled "Icelandic" really comes from Iceland. Whale and puffin meat and any sealskin are best left behind on conservation grounds, and most home countries restrict or ban bringing whale or seal products in at all. Be wary of mass-produced trinkets and puffin figurines, which are often imported rather than made in Iceland. The same is true of polished lava jewelry, since local lava is too soft and porous to polish. For wool and design, look for a hand-knit, Icelandic-made label, since many tourist-shop pieces come from overseas.

Yes, Icelandic souvenirs are worth it, as long as you're picky about what to buy. Iceland is expensive, so put your money into the pieces worth paying up for, like a lopapeysa you'll wear for years. Skip the fridge magnets and keychains. Non-residents shopping in Iceland can also claim back part of the VAT on purchases of 12,000 ISK ($95/€83) or more, up to roughly 14% of the price.

For food, candy, and salt, head to supermarkets like Bónus and Krónan. For wool, the Handknitting Association of Iceland is the place for certified hand-knit sweaters, while the weekend Kolaportið flea market is the most affordable spot for them. Design and souvenir shops cluster along Laugavegur and Skólavörðustígur in downtown Reykjavík. Comparing a few shops pays off, since identical items are often priced differently along the same street. Alcohol is sold only at Vínbúðin or the airport Duty Free. If you're short on time, Icelandic makers like Omnom ship abroad.

Iceland's most popular souvenir is the lopapeysa, the Icelandic wool sweater. Unlike most things you bring home, you'll keep wearing it, on the trip and for years afterward. The other big seller, the puffin soft toy, is cheaper but gets little use once home. Between the two, the sweater is the one people still reach for years later.

Chocolate, licorice, and postcards are the cheapest souvenirs, most at only a few hundred ISK each. Because they cost so little, one on its own won't reach the 12,000 ISK ($95/€83) tax-free minimum. Group several items on a single receipt if you want to claim VAT back. Edible gifts also get used up, so they leave no clutter at home.

Lopi wool can feel coarse against bare skin, more so than merino, because it keeps its rougher outer fiber (tog) for water resistance. For a softer sweater, look for yarn spun mostly from the fine inner fiber (þel). Lambswool pieces or accessories lined at the neck and cuffs are even gentler. The yarn also eases a little after a wash and a few wears.

Sealed, shelf-stable goods like chocolate, licorice, sea salt, and dried fish travel home fine. Meat and dairy are the risk, and the rules have tightened: since April 2025, Great Britain bans travelers from bringing meat or dairy from Iceland or the EU for personal use, with fines up to £5,000. Other countries vary and change these rules often, so don't pack meat or dairy without checking your destination first. Declare any food at customs to be safe.

Hand-wash a lopapeysa in lukewarm water with wool detergent, or use a gentle wool cycle. Press out the water and lay it flat to dry. Never wring or hang it, since wet wool stretches out of shape. Icelandic wool resists dirt and odor, so airing it outside between wears is usually enough. Washing it too often does more harm than good.

Kolaportið is open weekends only, Saturday and Sunday, from 11 AM to 5 PM, year-round. You'll find it in the old customs house at Tryggvagata 19, by the harbor in downtown Reykjavík. The market is Iceland's largest and oldest, established in 1989. Bring cash, since stalls might not take cards. There's an ATM inside, but the line can be long, so it's better to withdraw beforehand.

Keflavík Airport sells wool, skincare, candy, and books, and its Duty Free has the cheapest alcohol in the country. The selection is smaller than downtown, so the airport suits last-minute gifts and a bottle or two, not a full haul. Note that duty-free prices already exclude tax, which is different from the tax-free VAT refund on purchases made in town. The arrivals shop by the baggage hall also lets you buy alcohol on the way in, which is when many locals stock up.