Iceland - Country Commercial Guide
Agriculture - Food and Beverage

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2022-06-08


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.

Table: Food and beverages
  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.


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.


American-Icelandic Chamber of Commerce

Icelandic Federation of Trade

Icelandic Food and Veterinary Authority (MAST)

Invest in Iceland

Ministry of Higher Education, Science, and Innovation

Ministry of Food, Agriculture, and Fisheries

Ministry of Culture and Business Affairs

Business Iceland

SA Confederation of Icelandic Enterprise

Ted European Tenders

U.S. Embassy in Iceland

Vinbudin (ATVR)