Find the best markets, malls, and unique souvenirs in Iceland.
Iceland is a land of dramatic contrasts where fire meets ice, featuring active volcanoes, massive glaciers, geothermal hot springs, and the mesmerizing Northern Lights. This Nordic island nation offers breathtaking natural wonders from thundering waterfalls to black sand beaches, making it one of the world's most unique travel destinations.
Unique local products worth bringing home.
The iconic Icelandic wool sweater with traditional circular yoke patterns. Hand-knitted from lopi wool, naturally water-resistant and extremely warm.
Hand-carved and polished natural cow horn with pewter fittings, inspired by Norse heritage. Makes an impressive decorative display piece or functional drinking vessel.
Hand-thrown ceramics inspired by Iceland's volcanic landscapes, featuring basalt-grey glazes and lava-flow patterns. Many pieces are made by local artisans in Reykjavik.
Iceland's signature schnapps made from fermented grain and flavoured with caraway. Known as 'Black Death', this is the traditional accompaniment to hákarl (fermented shark).
Thick, protein-rich dairy product that has been made in Iceland for over 1000 years. Available in travel-friendly packaged forms and flavoured varieties.
Earrings, necklaces, and bracelets featuring polished Icelandic lava rock set in silver. Lightweight and distinctive keepsakes representing Iceland's volcanic origin.
Photographic or illustrated prints capturing Iceland's aurora borealis. Local photographers sell limited-edition prints of unique Northern Lights shots.
Translations of the medieval Viking sagas that form the foundation of Icelandic literary heritage. The Complete Sagas of Icelanders is the definitive collection.
Experience authentic local shopping culture.
Reykjavik's only flea market, housed in a large waterfront warehouse. Locals sell second-hand clothing, vinyl records, antique curios, and traditional Icelandic foods like hákarl and harðfiskur.
Seasonal farmers market selling fresh Icelandic produce, artisan cheeses, free-range eggs, organic vegetables, homemade jams, and handcrafted goods. Great for meeting local producers.
Community market in the Viking village of Hafnarfjörður featuring local crafts, vintage items, homemade baked goods, and occasional live music in a charming small-town setting.
Not strictly a market but Iceland's premier destination for authentic hand-knitted wool products. Members bring their own creations to sell, guaranteeing genuine handmade quality with no mass-produced imitations.
Bargaining phrases, souvenir recommendations, and budget tips.
Where to find different types of shops.
Reykjavik's most famous shopping street stretching from Hlemmur to the old harbour area. Features a mix of international brands, Icelandic design boutiques, outdoor gear stores, cafes, and restaurants. Best area for souvenir browsing.
Colourful street leading up to Hallgrímskirkja Church, painted in rainbow colours. Lined with independent boutiques selling Icelandic design, jewellery, art galleries, and specialty food shops.
Charming town 15 minutes south of Reykjavik with craft shops, Viking-themed stores, and antique dealers. Known as the 'Viking town' with a distinctive elf and folklore heritage.
Former industrial fishing harbour now home to independent Icelandic designers, concept stores, and creative studios. More authentic and less touristy than Laugavegur with locally made products.
Air-conditioned shopping options.
Iceland's largest shopping mall with over 150 stores including Zara, H&M, Icewear, and numerous local retailers. Food court, cinema, and supermarket. Located 3 km east of city centre.
Large modern mall in Kópavogur (20 min from Reykjavik) featuring major international and Icelandic brands, electronics stores, beauty salons, and a multiplex cinema. Best mall for everyday shopping.
How to negotiate prices in local markets.
Bargaining is not customary in Iceland – fixed prices are the norm in all shops, markets, and restaurants.
Kolaportið flea market is the one exception where gentle negotiation on antiques and second-hand items may be acceptable.
Look for end-of-season sales in January and July for discounts on Icelandic wool and outdoor gear.
Buying directly from the Handknitting Association guarantees authenticity and competitive prices compared to souvenir shops.
Duty-free shopping at Keflavik Airport is genuinely cheaper for spirits, cosmetics, and chocolate than city-centre shops.
What you need to know about taking purchases home.
Unprocessed animal products, fresh fruits, and vegetables are restricted from being brought into Iceland. Raw meat and eggs from outside the Schengen Area are prohibited.
Visitors from outside the EU can claim a VAT refund of 15% on purchases over 6,000 ISK (~$45) from participating stores. Collect a Tax-Free form at the time of purchase and present at Keflavik Airport on departure.
Travellers arriving in Iceland can bring 1 litre of spirits + 1 litre of wine, OR 3 litres of wine + 6 litres of beer duty-free. Tobacco: 200 cigarettes or 250g of tobacco.
Most Reykjavik shops offer international shipping to Europe, North America, and Australia. The Handknitting Association ships worldwide. Iceland Post (Pósturinn) is reliable for packages up to 30 kg.
Get our complete shopping guide with bargaining phrases, quality assessment tips, and budget planner.
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