Sauðárkrókur, authorized trading place since 1857, obtained its municipal charter in 1947. The main occupations are trading, fishing and light industry.

The Tannery Visitor Centre at Sauðárkrókur is the only tannery in Europe which makes fishleather. The Visitor Centre provides visitors with an unusual way to experience the tannery and its products: guided tours of the actual tannery, where fish-skin is expertly processed to make high-quality leather. At the Visitor Centre, leather goods are offered for sale. Fishleather from Atlantic Leather has caught the imagination of internationally- known fashion houses and brands such as Prada, Dior and Nike.