Hagkaup
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.
Other options
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.
What to buy (and what to skip)
Some categories are better value in Iceland than others. Knowing where the savings are can meaningfully reduce your monthly bill.
Good value
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.
Expensive or limited
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).
How to spend less on groceries in Iceland
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.
Frequently asked questions
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