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 a go-to outsourcing destination for businesses from established Western European economies. The initial draw was simple: labor costs were much lower, letting companies shift labor-intensive processes without leaving the EU market. More than two decades later, the region has changed dramatically. Countries like Poland are no longer just cheap production spots. Their manufacturers and service providers now handle technologically advanced processes and follow the same regulatory and quality standards as their Western European clients. Wages have gone up significantly too. But the region still holds its own for activities where access to a reliable workforce matters as much as automation. Co-packing is a perfect example. It covers outsourced packaging tasks like filling, labeling, repacking, shrink-wrapping, preparing promotional bundles, mixing ingredients, and assembling retail-ready products. Some of these can be automated, but others need flexible teams for manual work that would be expensive to handle in-house. For FMCG and e-commerce businesses, outsourcing these jobs frees up internal teams to focus on product development, sales, and marketing instead of managing packaging staff, equipment, and fluctuating campaign volumes. This article breaks down why CEE—and Poland in particular—offers a compelling mix of cost efficiency, labor availability, quality standards, and easy access to Western European markets. ### Lower Labor Costs Without Leaving the EU For most FMCG businesses, packaging is a supporting process, not a competitive edge. Internal teams create more value by developing products and strengthening brands than by hiring packaging staff, managing shifts, or maintaining underused machines. Outsourcing removes a lot of that operational headache, but where your provider is located still affects the bottom line. The average gross monthly salary in Poland's enterprise sector was about $2,450 in late 2025, based on exchange rates. While Polish wages have risen, they're still below levels in many Western European countries. Polish co-packers can price labor-intensive services competitively within the EU. For compact or higher-value products, added transport costs are often modest compared to packaging savings. Bulky, low-value goods need closer math, but distance alone shouldn't rule out this model. ### Access to Labor for Processes That Can't Be Fully Automated Cost is only part of the story. In many Western European markets, finding people willing to do repetitive production and packaging work is getting tougher. Even automated lines need trained operators, and many co-packing projects still rely heavily on manual work. This is especially true for unusual packaging formats, promotional campaigns, mixed product bundles, gift sets, and premium items that need careful handling. These projects often involve short runs and frequent format changes, making dedicated automation impractical or expensive. 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. 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 and Regulatory Alignment A common worry about outsourcing to CEE is quality. But the reality is that many Polish co-packers now work to the same standards as their Western European clients. They follow EU regulations, ISO certifications, and often have their own rigorous quality checks. This alignment means you're not sacrificing quality for cost. You're getting both, plus access to a workforce that's used to handling complex packaging tasks. ### What to Watch Out For No model is perfect. Here are a few things to keep in mind: - **Transport costs**: For bulky, low-value goods, shipping from CEE can eat into savings. Do the math. - **Communication**: Language barriers can pop up, but many co-packers have English-speaking teams. - **Lead times**: Distance adds a few days to shipping. Plan accordingly. ### The Bottom Line Central and Eastern Europe, especially Poland, has evolved from a cheap labor hub to a competitive co-packing destination. It offers lower costs, access to a willing workforce, and quality standards that match Western Europe. For FMCG and e-commerce businesses, it's a practical option worth exploring.