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 in 2004, Central and Eastern Europe quickly became an important outsourcing destination for businesses from established Western European economies. The initial attraction was straightforward: labor costs were considerably lower, allowing companies to relocate labor-intensive processes without moving them outside the European market. More than two decades later, the region has changed significantly. Countries such as Poland are no longer simply low-cost production locations. Their manufacturers and service providers increasingly manage technologically advanced processes and work according to the same regulatory and quality frameworks as their Western European clients. Wages have also risen substantially. Nevertheless, the region remains competitive for activities in which access to a reliable workforce is as important as automation. Co-packing is a perfect example. The term covers outsourced packaging operations like filling, labeling, repacking, shrink-wrapping, preparing promotional bundles, mixing ingredients, and assembling retail-ready products. Some of these processes can be automated, while others require flexible teams capable of carrying out manual work that would be expensive to organize internally. For FMCG and e-commerce businesses, outsourcing these activities can free internal teams to concentrate on product development, sales, and marketing rather than managing packaging staff, equipment, and fluctuating campaign volumes. This article examines why CEE—and Poland in particular—can offer an attractive combination of cost efficiency, labor availability, quality standards, and access to Western European markets. ### Lower Labor Costs Without Moving Production Outside the EU For most FMCG businesses, packaging is a supporting process rather than a source of competitive advantage. Internal teams usually create more value by developing products and strengthening the brand than by recruiting packaging staff, managing shift schedules, or maintaining underused machinery. Outsourcing removes much of this operational burden, but the location of the provider still affects the economics. The average gross monthly salary in Poland's enterprise sector was about $2,400 in the fourth quarter of 2025—well below the $4,500 to $6,000 you'd see in Western Europe for similar roles. Although Polish wages have risen considerably, they remain competitive. Polish co-packers can therefore price labor-intensive services competitively within the EU. For compact or higher-value products, added transport costs may remain modest compared with packaging savings. Bulky, low-value goods require closer calculation—you'll want to run the numbers on shipping distances—but distance alone should not rule out the model. ### Access to Labor for Processes That Can't Be Fully Automated Cost is only part of the argument. In many Western European markets, finding people willing to perform repetitive production and packaging work has become increasingly difficult. Even automated lines require trained operators, while numerous co-packing projects still depend heavily on manual work. This is particularly true for unusual packaging formats, promotional campaigns, mixed product bundles, gift sets, and premium products requiring careful presentation. These projects often involve short runs and frequent format changes, making dedicated automation either impractical or expensive. A flexible workforce can therefore 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 Jan de Vries, an e-commerce consultant. "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 rather than at home." ### Quality Standards That Match Western Europe A common misconception is that lower labor costs mean lower quality. In reality, many CEE co-packers now operate under the same ISO certifications, food safety standards, and regulatory frameworks as their Western counterparts. They've invested in modern equipment and training to meet the demands of global brands. Poland, for instance, is a major food processing hub with strict hygiene and traceability requirements. Co-packers there regularly handle products destined for supermarket shelves across the EU. They understand the importance of consistent output—because one bad batch can damage a brand's reputation. ### What This Means for Your Business If you're an FMCG brand looking to reduce packaging costs without sacrificing quality, CEE co-packing is worth exploring. Here's a quick checklist to help you decide: - **Product value-to-weight ratio:** Higher-value, compact products benefit most from CEE co-packing. - **Labor intensity:** If your packaging requires significant manual work, CEE's labor pool is a major advantage. - **Campaign flexibility:** Short runs and frequent format changes are easier to handle with a flexible workforce. - **Transport logistics:** Factor in shipping costs and lead times, but don't let distance discourage you. ### Final Thoughts The Central and Eastern European co-packing market has matured significantly. It's no longer just about cheap labor—it's about accessing a reliable, skilled workforce that can handle both automated and manual processes while meeting Western quality standards. For FMCG businesses, that combination can be a real competitive edge.