Iceland Shopping Guide

The lopapeysa: Iceland's genuine souvenir

The lopapeysa — a traditional Icelandic wool sweater with a distinctive circular yoke pattern around the shoulders — is the one souvenir that's both authentically Icelandic and genuinely useful, given the weather you'll be packing for anyway. Hand-knitted versions cost considerably more than machine-made ones, but last for decades and are made from Icelandic sheep wool, which has a distinctive water-resistant, warm quality suited to the climate it comes from. The Handknitting Association of Iceland, with a shop on Skólavörðustígur in Reykjavik, is the most reliable place to find genuinely hand-knitted pieces rather than imported imitations sold under similar branding elsewhere.

Where to shop in Reykjavik

Laugavegur and the adjoining Skólavörðustígur form the main shopping stretch in central Reykjavik — a mix of Icelandic design shops, wool and outdoor gear stores, bookshops and cafes, easily covered on foot alongside the rest of a city-center visit (see our Reykjavik things to do guide). For something different, the weekend-only Kolaportið flea market near the harbour is worth a browse for secondhand goods, local crafts and Icelandic food products at more casual prices.

Duty-free: buy on arrival, not departure

Icelandic food products worth bringing home

• Skyr doesn't travel (it's a fresh dairy product), but dried fish snacks, local flaky salt, and rye bread mixes are shelf-stable options that hold up well in luggage.
• Brennivín, Iceland's traditional schnapps, makes a distinctive, genuinely local gift if you're bringing alcohol home within your duty-free allowance.
• Local honey and geothermal-baked goods show up in farm shops and markets around the country, particularly worth a look if you're road-tripping through rural areas.

What's not worth your suitcase space

Mass-produced "Viking" trinkets, imported wool goods marketed as Icelandic but made elsewhere, and novelty items sold at tourist-heavy stops tend to be the least interesting and least authentic purchases available — the lopapeysa, local food products and genuinely Icelandic design goods are a far better use of luggage space and budget.