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Grocery prices in Iceland run 30–50% above the European average. Here are real supermarket prices for 2026, a breakdown of every major chain, and practical strategies for managing your food budget.
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Groceries in Iceland are noticeably more expensive than in mainland Europe or North America. A weekly supermarket run that might cost €50 in Germany or the Netherlands can easily reach €80–100 here. The reasons are straightforward: Iceland imports most of its food, protective agricultural tariffs raise prices on meat and dairy, and the small domestic market limits competition. Still, grocery costs are predictable and manageable once you know where to shop and what to expect.
If you are planning a move to Iceland, food will be one of the first budget line items to adjust. This article covers real supermarket prices, the store landscape, and practical strategies for keeping your food spending under control.
The table below shows approximate prices for common staples at Iceland’s budget supermarkets (Prís, Bónus, Krónan, Nettó) as of March 2026. Prices are sourced from Verðlagseftirlit ASÍ, the Icelandic Confederation of Labour’s price monitoring tool. Convenience stores and premium chains charge 20–50% more for the same items.
Item | Budget store price (ISK) | Approximate USD |
|---|---|---|
Whole milk, 1L | 229–249 | $1.85–2.00 |
Eggs, 12-pack | 857–999 | $6.90–8.05 |
Sliced bread loaf (770g) | 579–589 | $4.65–4.75 |
Chicken breast, per kg | 1,950–2,769 | $15.70–22.35 |
Whole chicken, per kg | 1,039–1,076 | $8.40–8.70 |
Ground beef, 500g | 1,389–1,840 | $11.20–14.85 |
Sliced ham, 200g | 365–379 | $2.95–3.05 |
Gouda cheese, 700g | 1,709–1,749 | $13.80–14.10 |
Skyr, plain 500g | 485–499 | $3.90–4.00 |
Coca-Cola, 500ml | 199–219 | $1.60–1.75 |
Apples (imported), per kg | 399–499 | $3.20–4.00 |
Tomatoes (Icelandic), per kg | 1,044–1,098 | $8.40–8.85 |
Rúgbrauð (dark rye bread), 400g | 398–449 | $3.20–3.60 |
These figures reflect standard shelf prices at budget chains (Bónus, Krónan, Nettó, Prís), not sale or promotional pricing. Premium chains and convenience stores charge 20–50% more.
For residents who cook most meals at home and shop at budget stores, realistic monthly grocery spending looks roughly like this:
A single person can expect to spend 60,000–80,000 ISK per month ($485–645). A couple typically lands in the range of 90,000–130,000 ISK ($725–1,050). A family of four should budget around 120,000–170,000 ISK ($970–1,370).
These ranges assume regular cooking at home with occasional convenience items. Eating out frequently or buying primarily premium and imported goods will push costs significantly higher. For a full breakdown of monthly expenses beyond groceries, see the cost of living guide.
Three factors drive grocery prices above most European averages.
Iceland imports roughly half of its food. Transportation costs from mainland Europe add a baseline markup to everything from pasta to fresh produce. The country’s remote North Atlantic location means long supply chains and limited shipping frequency, particularly during winter.
Agricultural tariffs protect domestic farmers. Iceland applies an average tariff of roughly 20% on agricultural products, compared to about 2.5% on non-agricultural goods. Tariffs on meat and dairy are especially steep, which is why Icelandic lamb and dairy dominate supermarket shelves with little foreign competition. Import quotas further limit availability of cheaper alternatives.
The domestic market is small. With nearly 400,000 people, Iceland lacks the scale economies that drive down retail prices in larger countries. Fewer competitors, shorter production runs, and higher per-unit logistics costs all feed into shelf prices.
The one bright spot is geothermal energy. Iceland’s greenhouses use geothermal heat to grow tomatoes, cucumbers, peppers, and herbs year-round. Locally grown greenhouse produce is often comparable in price to imports, sometimes cheaper, and noticeably fresher.
Iceland has several supermarket chains at different price levels. Choosing the right store is the single biggest lever you have on your grocery bill.
The newest and currently cheapest option. Prís opened its first store in Kópavogur (Smáratorg 3) in August 2024, the first new budget grocery entrant in Iceland in 24 years. An ASÍ price survey of over 200 products found Prís cheaper than both Bónus and Krónan on nearly every item, often by 5–10%.
The low prices come from a stripped-back format: self-checkout only, card payments only, no cash registers, and limited opening hours (10:00–19:00 daily). The store is part of the Heimkaup group. Expansion plans for additional locations have been announced, but as of early 2026, the Kópavogur store remains the only location. If you live nearby, it is worth the trip.
Long the cheapest chain, and still the budget leader by store count. Recognizable by its yellow signs and pink pig logo, Bónus operates 33 stores across Iceland, with most concentrated in the Reykjavík capital area and along the Ring Road. The format is no-frills: simple shelving, limited selection, and shorter hours than competitors. Most locations open at 10:00 and close by 18:00 or 19:00, with some Reykjavík stores open 9:00–21:00. No 24-hour locations exist. Bónus is owned by Hagar hf.
Close to Bónus on price, with better selection and a more pleasant shopping experience. Krónan operates 26 stores and stocks a wider range of fresh produce, organic options, and specialty items. Opening hours are slightly more generous than Bónus. Krónan also offers online grocery ordering with delivery, which can be useful for new residents still getting settled. Krónan is a subsidiary of Festi hf.
A mid-range discount chain owned by Samkaup hf, with 21 locations spread across the country, including six in the capital area and stores in Akureyri, Selfoss, Ísafjörður, and other regional towns. Nettó carries a broader selection than Bónus, including household goods, and most stores are open 9:00–21:00. The Mjódd location in Reykjavík is open 24 hours.
Iceland’s only hypermarket chain, owned by Hagar hf (the same parent company as Bónus). Hagkaup operates seven stores, including five in the greater Reykjavík area and one in Akureyri. Selection is the widest of any Icelandic chain, with imported goods, international brands, clothing, electronics, and a large food department. Two locations (Skeifan and Garðabær) are open 24 hours. Prices typically run at least 10–20% above the discount chains.
Costco opened in Garðabær (a town in the Reykjavik Capital Area) in 2017 and has become popular with Icelandic households. Membership costs apply, but bulk buying can yield significant savings on pantry staples, meat, and household goods. Costco also operates one of the cheapest fuel stations in the country.
10-11 is a convenience store chain with extended hours (many locations open until midnight or later). Prices are the highest of any chain, often 30–50% above Bónus. Useful for emergencies, not for regular grocery shopping.
Kjörbuðin, Extra, and Krambúðin are smaller chains operated by Samkaup. Pricing falls between the discount chains and convenience stores. These are common in smaller towns where Bónus or Krónan may not have a location.
Some categories are better value in Iceland than others. Knowing where the savings are can meaningfully reduce your monthly bill.
Dairy products are high quality and reasonably priced relative to the rest of the grocery basket. Skyr (a thick, high-protein cultured dairy product similar to yogurt) is a staple, with a 500g tub running 485–585 ISK at budget stores. Milk, butter, and cheese are all domestically produced and competitively priced.
Icelandic lamb is grass-fed, free-range, and widely available. While meat in general is expensive compared to mainland Europe, lamb is the best-value protein if you are buying Icelandic. The animals graze freely in highlands during summer, eating wild grass and herbs, which gives the meat its distinctive flavor.
Greenhouse vegetables such as tomatoes, cucumbers, and bell peppers are grown year-round using geothermal energy. These are often fresher and sometimes cheaper than imported equivalents. Look for Icelandic-grown labels in the produce section.
Fresh fish is abundant and often excellent value. Cod, haddock, and Arctic char are widely available. Fish counters at Krónan and Hagkaup offer good variety, and frozen fish is available at all chains.
Imported fresh fruit costs more than in mainland Europe. Bananas, oranges, apples, and berries all carry import and transport costs. Buy seasonal or on-sale when possible.
Processed and packaged imports (cereals, snacks, sauces, international brands) carry steep markups. Where a domestic alternative exists, it is almost always cheaper.
Alcohol is not sold in regular supermarkets. Beer, wine, and spirits are only available at Vínbúðin, the state-run liquor store. Prices are high due to heavy excise taxes. Most towns have at least one Vínbúðin location, but hours are limited (typically closing at 18:00 on weekdays, earlier on weekends).
Shop at Prís, Bónus, or Krónan by default. Price differences between the budget chains and premium stores add up fast. A full weekly shop at a budget chain can cost 20–30% less than the same basket at Hagkaup. If you live near the Prís store in Kópavogur, it consistently undercuts even Bónus.
Cook from scratch. Prepared meals, pre-cut vegetables, and ready-to-eat items carry significant premiums. Basic ingredients are always cheaper.
Buy Icelandic dairy and meat. Domestic products avoid import tariffs and are often the best value in their category. Icelandic dairy in particular is both affordable and high quality.
Use Costco for bulk staples. If you have a membership, Costco offers strong value on rice, pasta, cooking oil, frozen goods, and household products. The savings on fuel alone can offset the membership fee.
Check sell-by discounts. All Icelandic supermarkets discount items approaching their sell-by date, typically by 30–50%. Krónan and Hagkaup are especially consistent about this. These stickers appear on meat, dairy, bread, and prepared foods daily.
Compare prices on Verðlagseftirlit ASÍ. The Icelandic Confederation of Labour runs a free price comparison tool that tracks prices across all major chains. Search for any product by name to see which store is cheapest. The site is in Icelandic, but product names are easy to look up.
Plan around store hours. Bónus in particular closes earlier than other chains (often 18:00 outside Reykjavík). Running out of essentials at 20:00 means paying 10-11 convenience store prices. Keep a stocked pantry to avoid this.
In smaller towns, your options narrow. Many rural areas are served by Nettó, Kjörbuðin, or Krambúðin rather than Bónus or Krónan. Prices at these stores tend to run 10–15% higher than in the capital area.
Some towns have only one supermarket. In the Westfjords, East Iceland, and parts of the north, you may have a single Samkaup-owned store as your only option. Planning larger shopping trips for when you visit Akureyri or Reykjavík is a common strategy for residents of remote areas.
Fresh produce and specialty items can be harder to find outside the capital area. Selection decreases with distance from Reykjavík, and some items that are always in stock at a Reykjavík Krónan may only appear sporadically in rural stores.
For residents of Akureyri, the selection is reasonable: the town has Bónus, Nettó, Krónan, and Hagkaup locations, making it the best-served town outside the capital region.
Is it true that groceries in Iceland cost 50% more than in Europe?
The markup varies by category. On average, groceries in Iceland run roughly 30–50% above the Western European average and 40–60% above US prices. Dairy and greenhouse vegetables are closer to European norms, while imported fruit, processed goods, and alcohol are significantly more expensive.
Can I buy alcohol at the supermarket?
No. All alcohol above 2.25% ABV is sold exclusively through Vínbúðin, the state liquor monopoly. Supermarkets sell low-alcohol beer (often labelled pilsner or bjór at 2.25% or below), but nothing stronger.
Which supermarket is the cheapest?
Prís is currently the cheapest, undercutting Bónus by 5–10% on most items according to ASÍ price surveys. The catch is that Prís only has one location (in Kópavogur) as of early 2026. For most people, Bónus remains the practical budget leader thanks to its 33 stores nationwide. Krónan is close behind on price with better selection. The difference between any budget chain and the most expensive chain (10-11) can be 30–50% on the same item.
Do Icelandic supermarkets have loyalty programs or apps?
Some chains offer apps or digital coupons, but Iceland does not have the extensive loyalty card culture found in the UK or US. The most effective way to save is simply choosing the cheapest store and buying Icelandic products over imports where possible.
Are there farmers’ markets in Iceland?
A few. Frú Lauga in Reykjavík (with locations in central Reykjavík and Laugardalur) specializes in local farm produce, meat, and dairy. Seasonal farm-direct sales under the Beint frá býli (Straight from the Farm) initiative are growing, with farmers selling at markets, roadside stands, and directly from farms. These are not typically cheaper than supermarkets, but the quality and selection of local products can be worth the premium.
Is online grocery delivery available?
Yes. Krónan offers online ordering with home delivery in the capital area. Delivery fees apply, but the convenience can be valuable for new residents who are still learning the city and may not have a car yet. Other delivery options, including Heimkaup, also serve the Reykjavík area.
Last updated: March 2026
