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 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 good example. The term covers outsourced packaging operations such as 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 PLN 9,228.64 in the fourth quarter of 2025 – approximately $2,340 at current exchange rates. Although Polish wages have risen considerably, they remain below the levels found in many Western European economies. 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, 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. 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," says Jan de Vries, an e-commerce consultant specializing in European supply chains. ### Quality Standards That Match Western Europe A common concern about outsourcing to Eastern Europe is quality. But the reality today is different. Many Polish co-packers now hold ISO certifications and follow the same food safety and packaging regulations as their Western counterparts. They've invested in modern facilities and training programs that rival those in Germany, France, or the UK. This means you don't have to sacrifice quality for cost savings. In fact, some companies find that the attention to detail in CEE co-packing operations actually improves their final product presentation, especially for complex promotional bundles or premium packaging. ### What This Means for Your Business If you're an FMCG or e-commerce business looking to streamline operations, co-packing in Central and Eastern Europe offers a practical path. Here's a quick list of benefits to consider: - Lower labor costs without leaving the EU market - Access to a reliable workforce for manual packaging tasks - High quality standards that meet Western European requirements - Flexibility for short runs and frequent format changes Of course, it's not a one-size-fits-all solution. You'll need to evaluate your specific product types, volumes, and logistics. But for many businesses, the combination of cost efficiency and labor availability makes CEE co-packing a smart move worth exploring.