Bioplastics derived from food by-products are emerging as a sustainable alternative to conventional plastics, offering substantial environmental benefits due to their renewable nature and biodegradability. This review explores recent advancements in the development of bioplastics using diverse food by-products, including fruit peels, vegetable waste, and lignocellulosic biomass. It examines the methodologies, results, and implications of various studies; provides in-depth case studies of successful applications; and analyzes production methods concerning their efficiency, cost, and environmental impact. Additionally, this review addresses current market trends, regulatory challenges, and opportunities, proposing future research directions in this rapidly evolving field. High-quality figures, tables, equations, and models are included to provide a detailed understanding of the lifecycle, environmental impact, and market potential of bioplastics. The findings highlight the crucial role of ongoing innovation, regulatory frameworks, and consumer awareness in promoting the widespread adoption of bioplastics derived from food by-products.