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Iceland souvenirs: The best things to buy in 2026
Discover authentic souvenirs from Iceland. Learn how to spot real lopapeysa wool sweaters, where to shop in Reykjavik, and what to buy.
Iceland is known for pure wool items like hand-knitted lopapeysa sweaters, geothermal skincare, volcanic lava salt, chocolates, and spirits like Brennivin.
To make sure you’re investing in authentic Iceland souvenirs, you’ll have to understand local craft traditions and differentiate between real and fake Icelandic wool. We cover how to find the best Iceland souvenirs in this guide with the help of our local Holafly expert Jihea Chang, along with tax-free shopping options.
Learn more about what to buy in Iceland, what to avoid, and how to spot top-quality souvenirs with Holafly’s unlimited data eSIM for Iceland.
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What is Iceland known for? Traditional Iceland souvenirs
TL;DR? Our local expert, Jihea Chang, says you can’t go wrong with these traditional and authentic Iceland souvenirs:
- Craft spirits: Brennivin schnapps, Reyka Vodka, and Himbrimi Gin
- Lava salt and geothermal sea salt: Flaky sea salt blended with activated volcanic charcoal
- Icelandic chocolate and black licorice
- Geothermal spa skincare: Mineral-rich mud masks, silica creams, and algae serums sourced locally
Icelandic souvenirs are as special as its unique landscape and rooted in its agricultural heritage. For example, Iceland’s sheep breed produces a unique wool called lopi.
This wool is used to make traditional lopapeysa sweaters, gloves, and socks, which are some of the best and most authentic Iceland souvenirs. Other traditional Iceland souvenirs revolve around volcanic minerals and Scandinavian-style sweets.
1. Hand-knitted lopapeysa sweaters and wooden goods
You can recognize a lopapeysa sweater by its distinct patterned yoke around the collar. It’s made of Icelandic sheep wool, which has two types of fibers: þel (fine, insulating inner fibers) and tog (long, water-resistant outer hairs).
Here’s how to spot the real thing:
- Hand-knitted vs mass-produced: True hand-knitted sweaters do not have side seams. They also might have slight differences in stitches. Machine-made sweaters feel unnaturally “perfect” or light.
- Made in Iceland: Check the brand label. Authentic sweaters have certification tags from “The Handknitting Association of Iceland” (Handprjónasamband Íslands).
2. Icelandic chocolate and black licorice
Chocolate in Iceland is rich and creamy. In general, the northern European style of chocolate-making involves blending smooth milk chocolate with savory ingredients.
Some milk chocolate bars contain crushed salted licorice (lakkris) or sea salt. This flavor combination is authentically Icelandic and makes a great souvenir. Plus, items like licorice jellies, chocolate bites, and candy bars are light, affordable, and travel well.
3. Black lava salt and sea salts
The Westfjords in Iceland harvest salt using 100% geothermal energy, making it a unique culinary souvenir. Black lava salt, on the other hand, is blended with activated charcoal and looks like the dark volcanic sands of Black Sand Beach and Diamond Beach.
Not only is it a unique souvenir to give to family and friends (or keep for yourself), but you can also put it on home-cooked dishes for some extra crunch.
4. Skyr (packed for short travel durations)
Skyr is one of Iceland’s traditional dairy products. It’s a soft cheese but resembles and is eaten like a thick yogurt. It’s rich in protein, low in fat, and a staple in the Icelandic diet.
Remember to keep fresh Skyr cups cold. Skyr also sells sealed single-serve tubs that are perfect for checked luggage on short-haul flights. Do not carry these in your cabin hand luggage as they will probably be confiscated due to liquid restrictions.
5. Local spirits like Brennivin, Reyka Vodka, and Himbrimi Gin
Iceland produces special liquors infused with local botanicals:
- Brennivin: Known as “The Black Death”. This is an unsweetened caraway-flavored schnapps and is Iceland’s national spirit. Locals tend to have it with fermented sharks.
- Reyka Vodka: Distilled using glacial spring water filtered through lava rock fields.
- Himbrini Gin: A craft gin flavored with wild Arctic thyme and honey.
Important: Liquid bottles over 100 ml cannot be placed in your cabin baggage. Always pack full-sized liquor bottles in your checked luggage or purchase them at the duty-free store at Keflavik International Airport.
6. Geothermal skincare products
Iceland is known for its geothermal waters. In fact, going to Blue Lagoon or Sky Lagoon is one of the top experiences on our list of things to do in Iceland.
These waters are famous for treating dry skin conditions and preserving moisture. Naturally, it’s found in authentic Icelandic skincare sets. These include mineral face masks, silica creams, and face serums, which are popular among locals and visitors.
7. Icelandic design, art, and music
Beyond authentic and traditional souvenirs, Iceland also has many artistic and cultural gifts.
- Puffin-themed gifts and local art prints depicting waterfalls like Skógafoss or the Northern Lights
- Vinyls or CDs of Icelandic music featuring acts like Sigur Rós, Björk, or Of Monsters and Men
- Icelandic literature books, including historical and modern crime fiction
8. Easy-to-pack Icelandic gifts under $20
If suitcase space is limited or you need to get multiple gifts for friends and family, here are some souvenir ideas:
- Scented lava stones: Pouches of natural volcanic basalt rocks with essential oil blends
- Fish skin accessories: Wallets, cardholders, and keychains made from recycled salmon or cod skin
- Arctic thyme tea: Herbal tea blends from the mountains
- Plush puffin toys: Soft and light puffin plushies that are easy to pack and perfect as souvenirs for kids
- Icelandic Christmas Yule Lads ornaments: Handcrafted wooden or ceramic figurines of the 13 Yule Lads from Icelandic folklore
Where to shop for Iceland souvenirs in Reykjavik
According to Jihea, you’ll find a variety of worthy souvenirs in shopping centers along Laugavegur and Skólavörðustígur (the street leading up to the Hallgrímskirkja church). You can use Iceland’s public transport to reach these places.
- Skólavörðustígur: Home to local stores, galleries, and the Handknitting Association of Iceland store.
- The Viking: Some say it’s one of the best souvenir shops in Iceland. It’s a family business, and they sell a wide variety of locally-made items for children, men, and women.
- Laugavegur: Has outdoor gear brands (such as 66°North and ICEWEAR), souvenir shops, and design stores
- Kolaportið Flea Market: Located near the Old Harbor. This indoor bazaar opens on weekends and is the single best market to buy authentic hand-knit wool items, vintage goods, and local food items directly from locals without tourist markups.
Jihea’s note on where to shop: “Downtown Reykjavik is pretty small and has lots of souvenir shops. These shops have local handcrafted wool sweaters, gloves, and socks, which can be pricey. They also sell local handcrafted spices and jewelry. There are some Christmas shops where you can buy handcrafted souvenirs.”
Is buying duty-free at Keflavik Airport cheaper?
Yes! The duty-free store at Keflavík Airport is often cheaper for alcohol and skincare. Icelandic taxes on alcohol are among the highest in Europe. Buying Brennivín, Reyka Vodka, or local craft beers at duty-free saves you between 30% to 50% compared to other alcohol stores (Vínbúðin) in town.
Skincare products from Blue Lagoon are also exempt from local Value Added Tax (VAT) when bought right before you board your flight.
How to buy Icelandic souvenirs online
If you want to bring back authentic Iceland souvenirs but don’t have any luggage space, you have the option of buying them online after returning. However, when shopping online, you’ll have to pay more attention to which souvenirs are truly authentic.
- If you’re purchasing any Icelandic wool (lopi) items, make sure to purchase from the Handknitting Association of Iceland’s international shipping store.
- Check shipping details, as you may have to pay international customs duties or import taxes on the item.
Get Holafly’s unlimited data eSIM for your Iceland souvenir shopping spree
If you’re heading to Iceland soon, your itinerary is bound to be full of exciting experiences and souvenir shopping. Navigating Reykjavik’s local shops and verifying fair prices requires reliable mobile data.
With Holafly’s eSIM for Iceland, you get unlimited data, 24/7 customer support, and flexible plans ensuring you can:
- Calculate Icelandic Króna (ISK) conversions into your home currency using live exchange rates
- Read Google reviews for shops along Laugavegur to avoid tourist traps
- Look up tax-free refund limits and verify store opening hours across town
You also get 1 GB of Always On monthly backup data with every eSIM plan, as long as you keep the eSIM installed.
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FAQs about Iceland souvenirs
Yes, as a non-EU resident, you can claim a Value Added Tax (VAT) refund on eligible purchases. To qualify, you must spend at least 12,000 ISK (about $85-$90 USD) at a single store displaying a “Tax-Free Shopping” sign. Ask the shop clerk for a Tax-Free Cheque at checkout, and present your forms and unused items at the Keflavík Airport tax refund desk before checking your luggage.
You can bring sealed, commercially packaged food items, such as chocolate, candy, salt, and baked goods, through customs into most countries. However, raw or unpasteurized meat and dairy products are subject to strict import bans in many countries outside the European Union. Always check your home country’s import rules before bringing back fresh meat products.
Yes, credit cards, debit cards, and contactless mobile payment methods (like Apple Pay and Google Pay) are accepted, even for small purchases at public restrooms or rural gas stations.
Stay away from plastic trinkets imported from overseas, raw lava rocks collected directly from protected natural sites, and overpriced “fresh air” tins. Be careful when buying wool sweaters in generic tourist shops, and check labels to ensure they are genuinely hand-knitted in Iceland rather than machine-made imports.
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Born and raised in Queens, New York, I'm a Psychology graduate with a passion for writing that I've been nurturing since 2019. Over the years, I've enjoyed creating meaningful content across various niches, including sports, hospitality, and career development. At Holafly, I focus on crafting useful and inspiring pieces to make your adventures more effortless. One of the best perks of this role? Creating travel content always seems to inspire my next vacation destination!
