Why FMCG Brands Are Moving Co-Packing to Central and Eastern Europe

Jan de Vries · 2026-07-21

When ten countries joined the European Union back in 2004, Central and Eastern Europe suddenly became a hotspot for outsourcing. Western European businesses saw a clear opportunity: lower labor costs without leaving the EU market. It was a smart move, and it paid off. But here's the thing - the region has changed a lot since then. Countries like Poland aren't just cheap production hubs anymore. They've evolved. Manufacturers and service providers now handle complex, tech-driven processes. They follow the same strict regulations and quality standards as their Western partners. Wages have gone up too, no doubt about it. Still, the region stays competitive for tasks where having a reliable workforce matters just as much as automation. ### What Exactly Is Co-Packing? Co-packing covers a bunch of outsourced packaging tasks. Think filling, labeling, repacking, shrink-wrapping, putting together promotional bundles, mixing ingredients, or assembling products ready for store shelves. Some of these steps can be automated, but others need flexible teams doing manual work that would cost a fortune to handle in-house. For FMCG and e-commerce companies, outsourcing these activities frees up internal teams. They can focus on product development, sales, and marketing instead of managing packaging staff, equipment, and ever-changing campaign volumes. This article dives into why Central and Eastern Europe - especially Poland - offers a sweet spot of cost savings, available labor, quality standards, and easy access to Western European markets. ### Lower Labor Costs Without Leaving the EU For most FMCG businesses, packaging isn't a competitive advantage. It's a support process. Your internal teams create more value by building products and strengthening your brand than by hiring packaging staff, juggling shift schedules, or keeping underused machines running. Outsourcing takes that weight off your shoulders. But where you outsource still affects your bottom line. In Poland, the average gross monthly salary in the enterprise sector hit about $2,320 in late 2025 (based on exchange rates). Sure, Polish wages have climbed, but they're still below what you'd pay in many Western European countries. So Polish co-packers can offer competitive pricing for labor-intensive services within the EU. For compact or higher-value products, added transport costs stay modest compared to packaging savings. Bulky, low-value goods need closer math, but distance alone doesn't kill the deal. ### Access to Labor for Work That Can't Be Automated Cost isn't the whole story. In many Western European markets, finding people willing to do repetitive production and packaging work has become tough. Even automated lines need trained operators. And a lot of co-packing projects still rely heavily on manual work. This is especially true for: - Unusual packaging formats - Promotional campaigns - Mixed product bundles - Gift sets - Premium products needing careful presentation These projects often involve short runs and frequent format changes. Dedicated automation? Either impractical or expensive. So a flexible workforce can be more valuable than another high-speed machine. "One of the strengths of our market is access to people willing to carry out manual packaging work efficiently and reliably - provided that the co-packer has the right onboarding, supervision, and quality-control processes in place," says an industry insider. "In some cases, it can even make economic sense for a Western European company to send its own packaging equipment to an Eastern European co-packer and have it operated there." ### Quality Standards and Market Access You might worry about quality when outsourcing to a different region. But here's the reality: many CEE co-packers operate under the same EU regulations as their Western counterparts. They're certified, audited, and experienced with international clients. Plus, being close to Western European markets means shorter shipping distances and faster turnaround times. ### So Should You Consider It? If you're an FMCG or e-commerce business struggling with packaging costs or labor shortages, Central and Eastern Europe - especially Poland - deserves a closer look. The combination of lower wages, available workers, solid quality, and EU market access creates a compelling case. Just run the numbers for your specific products, especially if they're bulky or low-value. But don't let distance scare you off. Many businesses are already making it work.