Why FMCG Brands Are Turning to Eastern Europe for Co-Packing

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 hub for businesses in Western Europe. The reason was simple: labor costs were way lower, and companies could move work there without leaving the EU market. Fast forward more than two decades, and the region has changed a lot. Countries like Poland aren't just cheap production spots anymore. Their manufacturers now handle high-tech processes and follow the same quality and regulatory standards as their Western clients. Wages have gone up too, but the region still wins for jobs where having a reliable workforce matters just as much as automation. Co-packing is a perfect example. It covers outsourced packaging tasks like filling, labeling, repacking, shrink-wrapping, putting together promotional bundles, mixing ingredients, and getting products ready for retail shelves. Some of this work can be automated, but a lot needs flexible teams doing manual tasks that would cost a fortune 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 shifting campaign volumes. This article digs into why CEE, and especially Poland, offers a sweet mix of cost savings, labor availability, quality standards, and easy access to Western European markets. ### Lower Labor Costs Without Leaving the EU For most FMCG companies, packaging is a support function, not a competitive edge. Your internal teams create way more value by developing products and building your brand than by hiring packaging workers, managing shifts, or running underused machines. Outsourcing takes that operational headache away, but where your provider is located still affects the bottom line. In Poland, the average gross monthly salary in the enterprise sector hit PLN 9,228.64 in Q4 2025, which is about $2,300 at current exchange rates. Even though Polish wages have climbed, they're still well below what you'd pay in many Western European countries. That means Polish co-packers can price their labor-intensive services competitively within the EU. For compact or higher-value products, extra transport costs might be tiny compared to the packaging savings. Bulky, low-value stuff needs a closer look, but distance alone shouldn't kill the deal. ### Access to Labor for Manual 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 gotten really tough. Even automated lines need trained operators, but a lot of co-packing projects still rely heavily on manual labor. This is especially true for unusual packaging formats, promotional campaigns, mixed product bundles, gift sets, and premium items that need careful presentation. These projects often have short runs and frequent format changes, making dedicated automation impractical or expensive. So, a flexible workforce can be worth more 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," says a Polish co-packer. "Provided that we have the right onboarding, supervision, and quality-control processes in place, 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." ### What FMCG Brands Should Consider Before jumping in, here are a few things to weigh: - **Product value vs. transport costs**: High-value, compact items are a no-brainer. For bulky or low-value goods, run the numbers on shipping. - **Quality standards**: Polish providers now match Western European quality frameworks, but always audit your partner. - **Labor flexibility**: Manual work is still key for short runs and promotions, so check the provider's workforce management. - **Equipment sharing**: Sending your own machines to a co-packer can work if they have the right setup and oversight. ### The Bottom Line Central and Eastern Europe, especially Poland, gives FMCG brands a practical way to cut packaging costs without leaving the EU. You get lower labor costs, access to a willing workforce for manual tasks, and quality standards that match what you'd expect at home. Just be smart about product value, transport costs, and choosing the right partner.