Iceland has long depended on the sea. Fisheries have historically, and still do, supply wild-caught cod and other species, but are now complemented by a steadily growing aquaculture sector. For years, most of this marine material was exported raw. Today, powered by Iceland's abundance of geothermal and hydro energy, these resources are used in far more inventive ways, creating more value from less raw material. In the medical field, companies like Kerecis transform fish skin into innovative wound treatments. Additionally, by-products are refined into supplements and cosmetics (e.g. collagen) and omega-3 oils.
Still, the sector faces real pressure. Climate change is reshaping marine ecosystems, wild fish stocks are on the move, and international quotas limit how much can be caught. Aquaculture must contend with waste management issues, high energy demands, and ongoing concerns about animal welfare. These issues will likely be solved in the coming years, as the sector is growing rapidly, both land-based and sea-based.
Beyond fish, the ocean offers another resource: macroalgae. Species such as Ascophyllum nodosum and Laminaria digitata thrive in Iceland’s coastal waters, and companies are finding new ways to harness them. Thorverk produces seaweed meal using geothermal drying, while Algalif and Taramar extract bioactive compounds for health products, cosmetics, and anti-inflammatory applications.
The strong innovative drive is reflected in the research landscape. Matís drives practical solutions through projects like Flavour-B-Rich, which boosts spirulina by-product value into nutrient-rich flavour ingredients, or NextGenProteins, which set out to transform biomass into next generation proteins with the aim to strengthen food security, sustainability and self-sufficiency of EU protein production.
There are other bioeconomy projects, such as Terraforming LIFE, which focuses on converting fish sludge and manure into biogas and fertiliser. Hubs like the University of Iceland Science Park and Reykjavík Science City public-private partnership bring together companies, researchers, and policymakers to accelerate progress.
While Iceland does not yet have a dedicated national bioeconomy strategy, it plays a leading role in Nordic policy initiatives through Nordic Co-operation via the Nordic Council of Ministers.
