Skip to content
Thursday, 29 October 2026 Icelandic stories. Global audience.
Business & Politics

Iceland’s capelin: a small fish with a big economic impact

Capelin, a crucial species for Iceland's economy and ecosystem, is known for its unpredictable population. Some years bring large catches, while others see no fishing quota issued.

Whale-watching vessel moored at a harbour
File photo.

Capelin, a small fish found in Icelandic waters, plays an outsized role in the nation’s economy, according to recent reporting by Fréttin. This species is considered economically important to Iceland and underpins both the fishing sector and related industries.

The population of capelin, however, varies greatly from year to year. Some years bring abundant numbers, with capelin shoals appearing in very large concentrations. In contrast, other years see the species become so scarce that authorities do not issue any fishing quota at all, resulting in a pause for the capelin fishery.

Despite the changing numbers that influence fishing quotas and economic returns, capelin are always present somewhere around Iceland, according to Fréttin. These fish also serve as an important link in the marine ecosystem, supporting other species and helping maintain ecological balance.

Why it matters

Sources