Food Prices in Iceland: How Much Does it Cost in 2026?

Food prices in Iceland explained. Grocery costs, dining out, alcohol prices, and tips to help travelers save money while exploring Iceland affordably.

Planning a trip to Iceland and wondering how much you’ll spend on food? Prices for groceries, dining out, and even basics like snacks can feel higher than what many travelers are used to. But with the right approach, you can easily manage your budget and enjoy Iceland’s incredible food culture without overspending.

Is Food Expensive in Iceland?

Short answer: yes. Iceland can be an expensive destination and food there can be pricey, but how expensive it feels depends on where you’re coming from.

Travelers from major cities such as New York, London, or Copenhagen may not see a dramatic difference in prices. However, visitors from smaller towns or countries with lower food costs often experience sticker shock.

Iceland imports much of its food, which raises prices, and dining out is particularly costly due to wages and operating costs.

Iceland Grocery Prices

Buying groceries is almost always the most budget-friendly way to eat in Iceland. Here are some approximate average prices you can expect:

• Milk (1L): 200–250 ISK
• Bread (loaf): 350–500 ISK
• Eggs (12): 600–750 ISK
• Chicken breast (1kg): 1,600–2,200 ISK
• Cheese (1kg): 1,300–1,800 ISK
• Apples (1kg): 350–600 ISK
• Pasta (1kg): 250–350 ISK

For the best deals, shop at local grocery stores like Bónus, Krónan, or Nettó, all of which have locations throughout the country.

Alcohol Prices in Iceland

Alcohol in Iceland is heavily taxed and can only be purchased in the official government-run stores called Vínbúðin (not in regular grocery stores). Expect higher prices than in many other countries:

• Beer (0.5L): 350–500 ISK in Vínbúðin, higher in bars
• Wine (750ml): 2,000–4,000 ISK
• Spirits: Vary widely but generally expensive

Buying alcohol at the airport duty-free upon arrival is usually much cheaper.

How Much Does It Cost to Eat Out in Iceland?

Dining out is where food costs can climb quickly. Here’s what you can expect:

• Meal at an inexpensive restaurant: 2,000–3,500 ISK per person
• Meal for two at a mid-range restaurant: 12,000–18,000 ISK
• Family meal (2 adults + 2 children): 10,000–20,000 ISK depending on location
• Fast food: 1,000–2,500 ISK
• High-end dining: 20,000+ ISK per person

Reykjavík tends to be more expensive than smaller towns, and fine-dining restaurants can significantly raise your food budget.

Tips for Saving on Food in Iceland

Below are practical tips to help you eat well while spending less.

Shop at Budget-Friendly Grocery Stores

Stores like Bónus, Krónan, and Nettó offer the lowest food prices in Iceland. You can stock up on essentials, snacks, and ready-made meals without overspending.

Avoid Eating Out Every Day

While Iceland has great restaurants, eating out daily adds up fast. Cooking in your accommodation can dramatically reduce your food budget.

Bring Dehydrated Food

Campers and hikers often bring dehydrated meals from home. They’re lightweight, easy to prepare, and help save money during long days exploring Iceland’s nature.

Don’t Buy Bottled Water

Iceland’s tap water is some of the cleanest in the world. Bring a reusable bottle and refill it anywhere. Icelandic tap water is free, eco-friendly, and tastes incredible.

Lookout for Special Offers & Happy Hours

Some restaurants and bars offer happy hour, 2-for-1 deals (2 fyrir 1), buffets, or lunch specials that can significantly reduce meal costs.

Find Cheap Eats

Not every meal has to be fancy. Try budget-friendly Icelandic staples like the famous Icelandic pylsa (hot dog), which costs far less than a meal in a sit-down restaurant.

Iceland Food Prices: You Don’t Have to Break the Bank

If you are planning a budget-friendly trip to Iceland, following this guide’s simple tips, visiting during the most affordable time, and keeping accommodations and food costs in check can help you enjoy your trip without breaking the bank. Food in Iceland can be pricey, but with smart planning, like shopping at the right grocery stores, avoiding unnecessary purchases, and mixing cheap eats with the occasional restaurant meal, you can enjoy delicious food without stretching your travel budget.

If you would like more tips on traveling in Iceland without overspending, we recommend checking out our Guide to Visiting Iceland on a Budget, for practical advice on finding the best deals, cutting down daily expenses, and making the most of your trip affordably.