This is a best prospect industry sector for this country. Includes a market overview and trade data.
Overview
In 2021, the value of imported food and beverages to Iceland was more than $672 million, including $47 million from the United States (source: Statistics Iceland, imported food and beverages). Iceland does not produce enough food for the domestic market and is dependent on imported food products. Organic, vegan, and health foods are increasingly popular in Iceland. There are high tariffs on most agricultural products that originate from outside the EU, and there are also restrictions on importing raw or fresh agricultural products originating from outside of the EU. Meat from the United States needs to be frozen for thirty days prior to entering the country. Iceland’s membership in the EEA means that Iceland adopts most of the EU’s product and import standards and regulations, such as food product labeling and a requirement for products to bear the CE marking.
There is a state monopoly on the retail sales of alcoholic beverages. In addition to selling to the government-owned retailer, Vinbudin (ATVR), wholesalers sell directly to bars, restaurants, and hotels. Inexpensive boxed wines are popular, but economic prosperity brings an increased interest in fine wines. Craft beer has also increased in popularity. Another source of increased demand is the tourism industry. The purchase price of alcohol includes government taxes. Law no. 96/1995 indicates that the tax is related to the percentage of alcohol in each liter.
| 2019 | 2020 | 2021 | 2022 estimated | |
|---|---|---|---|---|
| Total Local Production | N/A | N/A | N/A | N/A |
| Total Exports | $2,089 | $2,180 | $2,438 | N/A |
| Total Imports | $585 | $609 | $672 | N/A |
| Imports from the US | $43 | $46 | $47 | N/A |
| Total Market Size | N/A | N/A | N/A | N/A |
| Exchange Rates | $1 = 134.91 ISK | $1 = 134.91 ISK | $1 = 134.91 ISK | $1 = 134.91 ISK |
Units: $ millions
Source: Statistics Iceland, food and beverages.
Leading Sub-Sectors
Organic and health food, fresh fruit, wine, craft beer, and sweet potatoes.
Opportunities
Familiarity with and willingness to try American brands is high. Organic and vegan products are increasingly popular with Icelanders, who are seeking out such options and demanding more variety. Demand for fine wine and craft beer is increasing in Iceland.
Resources
American-Icelandic Chamber of Commerce
Icelandic Food and Veterinary Authority (MAST)
Ministry of Higher Education, Science, and Innovation
Ministry of Food, Agriculture, and Fisheries
Ministry of Culture and Business Affairs