Which European countries are nearshoring destinations, and where do the Baltics and Nordics fit?
Nearshoring means moving production or purchasing to a country closer to where the goods are sold. QIMA's inspection data put nearshoring and reshoring at a record 14% of EU sourcing in 2025. Germany Trade & Invest wrote in March 2025 that Finland, Estonia, Latvia and Lithuania should gain importance as procurement markets, citing EU and NATO membership.
What does nearshoring mean?
Nearshoring is moving production or purchasing from a distant country to one closer to the market where the goods are sold, such as from Asia to Europe for a European brand. Reshoring brings it back to the brand's home country. QIMA counts the two together in its sourcing barometer, as one share of EU sourcing.
QIMA put nearshoring and reshoring together at a record 14% of EU sourcing in the past year, on its own inspection and audit data. What changes in customs and VAT when the manufacturer is in another EU country is in do I pay customs or VAT when I buy from a manufacturer in another EU country?.
What do the surveys of 2025 and 2026 say?
They show a slow shift, not an exit from Asia. QIMA counted a record 14% of EU sourcing as nearshored or reshored in 2025, while China, Vietnam and Bangladesh still took 70% of its Western European inspections and audits. European firms in China still call it an important sourcing destination.
| Survey | Published | Who answered | Finding |
|---|---|---|---|
| QIMA Q1 2026 Sourcing Barometer | 15 January 2026 | QIMA's own inspection and audit data for 2025; sample size not stated | Nearshoring and reshoring a record 14% of EU sourcing; China, Vietnam and Bangladesh 70% of Western European inspections and audits, down from 77% in 2021; Mediterranean sourcing volume +25% |
| EU Chamber of Commerce in China, Business Confidence Survey 2026 (as reported by Kreab) | 27 May 2026 | European companies operating in China | 94% call China an important sourcing destination; 53% rank it among their top three investment destinations, the lowest on record; 14% have no investment plans there, the highest since 2004 |
| EU Chamber of Commerce in China, Shanghai chapter (as reported by Qatar Tribune) | 28 January 2026 | 324 European companies operating in China | Seven in ten reviewing their supply chain strategies; one in ten building alternative supply chains outside mainland China |
| Inverto (as reported by GRC Report), older than the others | 19 December 2023 | About 95 companies, mostly German, Austrian and Swiss | 42% see regionalisation as their main approach; 57% already source from Eastern Europe; 32% plan to move activities there |
Kreab's summary of the Chamber survey reads: "75% said their China-based production is more efficient than operations elsewhere." No survey of 2025 or 2026 found for this guide names the Baltics or the Nordics as a destination of diversified European sourcing.
Which European countries do companies nearshore to?
The surveys name regions, not a ranking of countries. In Inverto's 2023 survey of about 95 mostly German, Austrian and Swiss companies, 57% already sourced from Eastern Europe and 32% planned to move activities there. QIMA reports Mediterranean sourcing up 25% in a year, with Egypt at +52%, Morocco +38% and Tunisia +18%, all outside the EU.
Labour costs differ widely inside the EU. Across the whole economy, an hour of labour cost EUR 12.0 in Bulgaria, the lowest, and EUR 56.8 in Luxembourg, the highest, against an EU average of EUR 34.9 in 2025 (Eurostat). In manufacturing, the EU average was EUR 35.0 (Eurostat).
What does Germany Trade & Invest say about Finland and the Baltics?
That they should matter more as places to buy from. In an article of 14 March 2025, Germany Trade & Invest (GTAI) writes that Finland, Estonia, Latvia and Lithuania are expected to gain further importance as procurement markets, above all because of their EU and NATO membership and their strong export orientation.
In GTAI's words: "Finnland, Estland, Lettland und Litauen werden als Beschaffungsmärkte voraussichtlich weiter an Bedeutung gewinnen" (Finland, Estonia, Latvia and Lithuania are expected to gain further importance as procurement markets). German imports from the four came to about EUR 14 billion in 2024, on preliminary figures of the Federal Statistical Office. Intermediate goods of wood, paper, board, iron and steel were the main category, and GTAI notes that Lithuania is known for its logistics companies.
On cost, GTAI lists lower labour costs as a plus but adds: "Die Differenz zwischen Deutschland und den baltischen Ländern bei den Arbeitskosten ist allerdings rückläufig" (the labour cost gap between Germany and the Baltic states is, however, shrinking). From 2020 to 2023 labour costs rose by more than 23% in Latvia and almost 29% in Estonia. For 2023 GTAI gives EUR 18.30 an hour in Estonia, EUR 14.80 in Lithuania, EUR 13.80 in Latvia and EUR 38.50 in Finland.
Finland, GTAI writes, cannot match Baltic labour costs; one of its subheadings says that nowhere in the EU is electricity cheaper than in Finland. The text of the article does not mention Asia or China.
Where do the Baltics and the Nordics fit?
As two cost levels inside one market. In 2025 manufacturing labour cost EUR 14.9-19.5 an hour in the three Baltic states and EUR 43.6-47.2 in Finland and Sweden, against an EU average of EUR 35.0 (Eurostat). NordSourced lists 235 private label manufacturers in the Baltics and 208 in the Nordics whose own websites say they make for other brands.
| Country | EUR per hour, manufacturing, 2025 | Change, Q4 2025 on Q4 2024 | Manufacturers listed on NordSourced | Largest groups on NordSourced |
|---|---|---|---|---|
| Latvia | 14.9 | +7.4% | 82 | food and beverages (25), furniture and interior products (18) |
| Lithuania | 16.4 | +9.0% | 87 | food and beverages (23), furniture and interior products (18) |
| Estonia | 19.5 | +5.2% | 66 | food supplements (19), cosmetics (15) |
| Finland | 43.6 | +2.9% | 104 | food and beverages (45), furniture and interior products (19) |
| Sweden | 47.2 | +3.4% | 104 | furniture and interior products (29), food and beverages (26) |
| EU (27 countries) | 35.0 | +3.7% | Not applicable | Not applicable |
The three Baltic states have the lowest labour cost of the five and the fastest rise: up 9.0% in Lithuania and 7.4% in Latvia in the year to the fourth quarter of 2025, against 3.7% for the EU (Eurostat). The Baltic lists and the Nordic lists rank the manufacturers by a published evidence score.
What does your situation decide for you?
Three things decide it: the product group, the share of labour and energy in your cost, and where you buy today. NordSourced's counts show which groups each country covers; Eurostat's labour costs and GTAI's note on Finnish electricity show where each cost is lower. Each choice also has a cost of its own.
| If | It points to | What that choice costs you |
|---|---|---|
| Labour is a large share of your unit cost | The Baltics: EUR 14.9-19.5 an hour in manufacturing (2025) | Labour cost rising fastest: +9.0% in Lithuania, +7.4% in Latvia in a year |
| Your production uses a lot of energy | Finland, where GTAI says no EU country has cheaper electricity | Labour at EUR 43.6 an hour, more than twice the Baltic level |
| You want a supplier in Sweden or Finland | The Nordics: 208 manufacturers listed on NordSourced | The highest labour cost of the five: EUR 47.2 an hour in Sweden |
| You buy from China today and sell in the EU | A written quotation from a European manufacturer for the same brief | Staying: 30-35 days at sea from Shanghai to Rotterdam on every order. Moving: a new supplier search and new samples |
The sea-freight time is a forwarder's figure from March 2026 (Sino-Shipping). The comparison of labour and freight is set out in is it cheaper to manufacture in Europe or in China?.
Questions and answers
What is the difference between nearshoring and reshoring?
Nearshoring moves production or purchasing to a country near the market where the goods are sold, such as a German brand moving a supplier from Asia to Lithuania. Reshoring brings it back to the brand's own country. QIMA counts both together and put them at a record 14% of EU sourcing in its January 2026 barometer.
How much of EU sourcing has been nearshored?
A record 14%, nearshoring and reshoring together, according to QIMA's sourcing barometer of 15 January 2026, based on its own inspection and audit data for 2025. China, Vietnam and Bangladesh still made up 70% of QIMA's Western European inspections and audits in 2025, down from 77% in 2021.
Do European firms in China plan to leave?
Most do not say so. In a survey by the EU Chamber's Shanghai chapter, reported on 28 January 2026, seven in ten of 324 firms were reviewing their supply chains and one in ten was building alternatives outside mainland China. In the Chamber's 2026 survey, 14% had no investment plans in China, the highest share since 2004.
Which countries does Germany Trade & Invest expect to gain as sourcing markets?
Finland, Estonia, Latvia and Lithuania. In an article of 14 March 2025, GTAI writes that the four are expected to gain further importance as procurement markets, above all because of their EU and NATO membership and strong export orientation. German imports from them came to about EUR 14 billion in 2024, on preliminary figures.
What does Germany buy from Finland and the Baltic states?
Mostly intermediate goods. GTAI writes that imported intermediates of wood, paper and board and of iron and steel were the most important category of German imports from Finland, Estonia, Latvia and Lithuania, which came to about EUR 14 billion in 2024. It also notes that Lithuania is known for its logistics companies.
Are labour costs in the Baltics still below the EU average?
Yes. In 2025 an hour of manufacturing labour cost EUR 14.9 in Latvia, EUR 16.4 in Lithuania and EUR 19.5 in Estonia, against an EU average of EUR 35.0 (Eurostat). GTAI adds that the gap between Germany and the Baltic states is shrinking: from 2020 to 2023 costs rose by more than 23% in Latvia.
How fast are labour costs rising in Lithuania, Latvia and Estonia?
Faster than in the EU as a whole. Eurostat's figures for the fourth quarter of 2025 show hourly labour costs 9.0% higher than a year earlier in Lithuania, 7.4% in Latvia and 5.2% in Estonia, against 3.7% in the EU and 3.3% in the euro area. GTAI counts almost 29% growth in Estonia from 2020 to 2023.
Why would a brand choose Finland rather than the Baltics?
Not for labour: GTAI writes that Finland cannot match Baltic labour costs, and Eurostat puts Finnish manufacturing labour at EUR 43.6 an hour in 2025. GTAI points instead to electricity, saying nowhere in the EU is it cheaper. NordSourced lists 104 Finnish manufacturers that make products for other brands.
Which EU country has the lowest labour cost?
Bulgaria, at EUR 12.0 an hour in 2025 across the whole economy, according to Eurostat; Luxembourg is the highest at EUR 56.8, against an EU average of EUR 34.9 and a euro-area average of EUR 38.2. In manufacturing among the five Baltic and Nordic countries, Latvia is the lowest.
Is Latvia a nearshoring option for private label products?
Latvia has the lowest manufacturing labour cost of the five Baltic and Nordic countries, EUR 14.9 an hour in 2025 (Eurostat), and NordSourced lists 82 Latvian manufacturers whose own websites say they make for other brands; the largest groups are food and beverages (25), furniture and interior products (18). What Latvia is known for manufacturing has the industry figures.
How many private label manufacturers are there in the Baltics and the Nordics?
NordSourced lists 443, data of 14 Oct 2026: 235 in the Baltics (Latvia 82, Lithuania 87, Estonia 66) and 208 in the Nordics (Sweden 104, Finland 104). Each is listed because its own website says it makes products for other brands. Companies that do not say so online are not counted.
Which Baltic or Nordic country has the most furniture manufacturers that make for other brands?
Sweden, with 29 furniture and interior manufacturers listed on NordSourced, data of 14 Oct 2026. By country: Sweden 29, Finland 19, Latvia 18, Lithuania 18, Estonia 15. Only companies whose own websites say they make for other brands are counted; the Northern Europe furniture list ranks them by a published evidence score.
Has any recent survey named the Baltics or the Nordics as a nearshoring destination?
None was found for this guide. The surveys of 2025 and 2026 read here name regions such as the Mediterranean, and Inverto's 2023 survey names Eastern Europe. The nearest statement is GTAI's article of March 2025, which expects Finland and the three Baltic states to gain importance as procurement markets.
Where to go next
Sources
- QIMA Q1 2026 Sourcing Barometer (15 January 2026), QIMA. Checked 13 Oct 2026.
- Weekly China Insight, 29 May 2026 (EU Chamber of Commerce in China, Business Confidence Survey 2026), Kreab Beijing. Checked 13 Oct 2026.
- Over 70% of European firms in China review supply chain strategies: survey (28 January 2026), Qatar Tribune. Checked 13 Oct 2026.
- Nearshoring emerges as key supply chain risk mitigation strategy for European firms (19 December 2023), GRC Report, on an Inverto survey. Checked 13 Oct 2026.
- Estland, Lettland, Litauen und Finnland haben viel zu bieten (14 March 2025), Germany Trade & Invest (GTAI). Checked 13 Oct 2026.
- Eurostat, Labour cost levels by NACE Rev. 2 activity (lc_lci_lev), manufacturing, 2025, Eurostat. Checked 12 Oct 2026.
- Hourly labour costs, Statistics Explained (data extracted 31 March 2026), Eurostat. Checked 13 Oct 2026.
- Eurostat euro indicators, labour cost index, fourth quarter 2025 (19 March 2026), Eurostat. Checked 13 Oct 2026.
- Sea freight from China: transit times (Danish-language page, updated March 2026), Sino-Shipping (freight forwarder). Checked 13 Oct 2026.
Directory figures are counted from the manufacturers listed on NordSourced, each listed because its own website says it makes products for other brands; see how we check. This page is general information, not legal advice. Found a mistake? Tell us.