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Food prices in Palau are generally higher than the regional average due to the country's remote location and reliance on imported goods, with a meal at an inexpensive restaurant costing around $15-$20 USD.
Quick Facts
Food Costs Overview
The cost of food in Palau is significantly higher than in other parts of the region, mainly due to the country's island location and limited access to fresh produce. As a result, many staples such as rice, bread, and eggs are imported, driving up prices. Additionally, the lack of a large-scale agricultural industry means that fresh fruits and vegetables are often in short supply, making them more expensive. Eating out is a popular option in Palau, with many restaurants serving a mix of local and international cuisine. However, due to the high cost of ingredients and labor, prices can be steep, especially in mid-range and fine dining establishments.
In contrast, home cooking is a more affordable option, with many locals opting to prepare traditional dishes such as fish soup and coconut crab using fresh ingredients from their own gardens or the local market. To save money, visitors can also consider purchasing ingredients from the local market or supermarket and preparing their own meals. Furthermore, the inflation rate of 2.2% in 2024 and the high GDP per capita PPP of $18,230 in 2023 contribute to the overall high cost of living in Palau, including food prices.
Grocery Prices
| Item | Price (USD) | Local Price | Notes |
|---|---|---|---|
| Milk (1 liter) | $3-$5 | $3-$5 USD | imported from the US |
| Bread (white loaf) | $2-$3 | $2-$3 USD | locally baked |
| Eggs (dozen) | $2-$3 | $2-$3 USD | imported from the US |
| Rice (1 kg) | $1-$2 | $1-$2 USD | imported from Asia |
| Chicken breast (1 kg) | $8-$10 | $8-$10 USD | imported from the US |
| Beef (1 kg) | $12-$15 | $12-$15 USD | imported from Australia |
| Apples (1 kg) | $5-$7 | $5-$7 USD | imported from the US |
| Tomatoes (1 kg) | $3-$5 | $3-$5 USD | locally grown |
| Potatoes (1 kg) | $2-$3 | $2-$3 USD | locally grown |
| Onions (1 kg) | $1-$2 | $1-$2 USD | locally grown |
| Local cheese (1 kg) | $10-$12 | $10-$12 USD | made from imported milk |
| Water (1.5L bottle) | $2-$3 | $2-$3 USD | locally bottled |
Restaurant Prices
| Meal Type | Price Range (USD) | Notes |
|---|---|---|
| Street Food / Local Eatery | $5-$10 | typical dishes like fish tacos and coconut shrimp |
| Casual Restaurant | $15-$25 | one person, international cuisine |
| Mid-Range Restaurant (2 people) | $40-$60 | 3 courses, local and international dishes |
| Fine Dining (2 people) | $80-$120 | upscale, multi-course meals |
| Local Beer (draft, 500ml) | $5-$7 | Red Rooster and San Miguel |
| Imported Beer (330ml) | $7-$10 | Heineken and Budweiser |
| Cappuccino | $4-$6 | espresso-based drinks |
| Soft Drink (can) | $2-$3 | Coca-Cola and Pepsi |
Supermarket vs Local Market
When it comes to purchasing groceries, visitors to Palau have two main options: supermarkets and local markets. Supermarkets like Surangel and Sons and WCTC offer a wide range of imported and locally produced goods, but prices tend to be higher than at the local market. In contrast, the local market in Koror offers a variety of fresh produce, meats, and handicrafts at lower prices. However, the selection can be limited, and visitors may need to bargain to get the best deals. To save money, visitors can consider purchasing staples like rice and canned goods at the supermarket, while opting for fresh produce and local specialties at the market.
In general, the local market is the best place to find fresh fish, coconuts, and other local specialties, while supermarkets are better for imported goods like milk and bread. Visitors should also be aware that prices can vary depending on the time of day and the vendor, so it's a good idea to compare prices before making a purchase. Additionally, the high out-of-pocket health spend of 12.1% in 2023 and the significant education spend of 3.5% of GDP in 2023 contribute to the overall high cost of living in Palau, making it essential for visitors to be mindful of their expenses.
Local Food Tips
- The cheapest way to eat in Palau is to purchase ingredients from the local market and prepare your own meals.
- Local staples like taro, breadfruit, and coconuts are good value and can be used in a variety of dishes.
- Visitors should avoid buying imported goods like apples and beef, which can be very expensive.
- Fish is a staple in Palau, and visitors can find a wide range of fresh seafood at the local market.
- Consider purchasing local snacks like coconut crackers and fish jerky, which are affordable and delicious.
- To save money, visitors can also consider cooking their own meals instead of eating out, and buying in bulk to reduce waste and costs.