Iceland Grocery Shopping 2026: Costco & Duty-Free Tips

How expensive is Iceland, really?

That is probably the number one question everyone asks when planning a trip here!

Based on my recent road trip in May 2026,

I'm sharing my exact grocery shopping list and budget tips to help you save.

Keflavík Airport Duty-Free Alcohol Hacks

If you plan on having a drink in Iceland, buy your alcohol at the airport duty-free shop immediately upon arrival.

Alcohol at regular Icelandic stores (Vínbúðin) is heavily taxed and incredibly expensive.

Don't worry about missing the duty-free shop;

the airport layout forces you to walk right through it before you reach baggage claim.

Look at these adorable mini vodka bottles!

Grab a few of these to keep in your pocket.

They make for the perfect photo op when placed on top of a real glacier later!

It's a fun little travel tradition.

You won't find these mini bottles in regular local stores. They cost about 490 ISK (~$4) each.

We also picked up a 12-pack of local beer (16.9 oz / 500ml cans)

for 3,990 ISK (~$32).

It's heavy, but absolutely worth carrying!

Pro-tip: Bring a collapsible cooler bag from home. We packed all our drinks straight into our cooler bag right after buying them.

We also grabbed a bottle of Riesling white wine

for 1,590 ISK (~$13).

Even the duty-free alcohol section has self-checkout kiosks.

Iceland is incredibly high-tech and cashless!

Remember, shopping bags cost extra here, so keep your reusable grocery bags or cooler bags handy.

Stocking Up at Costco Iceland

After picking up our rental car, our very first stop was the Costco in Reykjavik.

If you are curious about our rental car experience, check out my review below:

Iceland Rental Car Review: Road Tripping the Ring Road in a Kia Sportageblog.naver.com

We went to Costco specifically hoping to find Kimchi, as we planned to cook almost all of our meals during our Ring Road road trip.

Unfortunately, we searched everywhere but couldn't find any.

We saw plenty of other Asian food items like ramen and seaweed snacks, but no kimchi.

We eventually asked a staff member, and they told us that if it wasn't on the shelves, it was out of stock.

It turns out kimchi is a rare, highly sought-after item at Costco Iceland.

You have to get lucky to find it! Don't rely entirely on Costco for your specialty items.

At least they had instant noodles, tteokbokki kits, and seaweed sheets!

Tangerines: 999 ISK (~$8)

We threw this bag in the back seat and snacked on them throughout our long drives. Highly recommended!

White bread: 589 ISK (~$5)

Hot dog buns: 639 ISK (~$5)

Costco's hot dog buns are much larger and fluffier than the ones you find at local grocery chains like Bónus.

The only downside is that they aren't pre-sliced, so you have to cut them open yourself, which can be a bit annoying when cooking on the road.

We ended up buying our hot dog sausages and classic Icelandic condiments at the Bónus supermarket right next door.

Glazed donut holes: 1,699 ISK (~$13)

Buffalo wings: 1,599 ISK (~$13)

We picked up a tray of these wings. They make for an incredibly easy, quick dinner after a long day of hiking.

Sushi roll platter: 2,833 ISK (~$22)

We decided to skip this one.

Shrimp cocktail platter: 2,842 ISK (~$23)

You'd think seafood would be cheap in Iceland, but that's not really the case!

Pre-made Lasagna: 2,865 ISK (~$23)

Here is our final Costco Iceland shopping list and what we spent:

Bananas (3 lbs / 1.36kg): 379 ISK (~$3)

Large Eggs (24-pack): 1,699 ISK (~$13)

Buffalo Wings: 1,425 ISK (~$11)

Tomato Marinara Sauce (3 jars): 1,399 ISK (~$11)

Hot Dog Buns (6-pack): 639 ISK (~$5)

Greek Yogurt (500g): 559 ISK (~$4)

Tangerines (4.4 lbs / 2kg): 999 ISK (~$8)

I normally try to eat fresh salad greens with every single meal...

But the price of fresh vegetables in Iceland is eye-watering, so I had to compromise on this trip!

A simple dinner whipped up using our Costco haul.

Pasta made with Costco marinara sauce, noodles,

and a side of buffalo wings.

If you enjoy cooking your own meals, you will find it incredibly easy and cost-effective to make food on the road.

The Famous Costco Food Court Hot Dog

Iceland is famous for its hot dogs, and the Costco food court version is legendary for being the ultimate budget meal.

And yes, it actually tastes amazing!

A hot dog and soda combo is only 299 ISK (~$2).

We originally split a hot dog and a chicken bake, but the hot dog was so delicious that we went back to order another one.

I wanted to load it up with raw onions, but they serve the hot dog with the onions already tucked neatly inside the bun,

so you only get to self-serve the sauces (ketchup and mustard).

Still, it was incredibly satisfying.

After fueling up at the food court and stocking up on essentials, we did a quick run to the neighboring Bónus for a few extra snacks and hit the open road!

Iceland eSIM Review: Stay Connected on Your Road Tripblog.naver.com