Fish and fish products constitute more than 70% of Iceland's exports of goods and are there for by far the most important industry. The continental shelf around Iceland, where the warm Gulf Stream and the cold nutrient currents from the Arctic meet, offers very favourable conditions for various kinds of marine life, and are rich fishing grounds.

The fishing territory, which is Iceland's main natural resource, requires strict protection, and fish catches are tightly controlled. The main species are: cod, haddock, saithe, redfish, herring and capelin.

Until the nineteenth century fish processing in Iceland consisted almost exclusively of stockfish production. In the early nineteenth century salt-fish production began to emerge and dominated Icelandic fish processing in terms of value. The fish freezing industry emerged in the 1930s. It expanded rapidly during World War II when traditional European markets were largely inaccessible. By 1950 the freezing industry had become the most important component of the fish processing industry and has remained so ever since.