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Waste management in the agricultural sector has become a major concern. Increased food production to satisfy the surge in population has resulted in the generation of large volumes of solid waste. Agro-waste is a rich source of biocompounds with high potential as a raw material for food packaging. Utilization of agro-waste supports the goal of sustainable development in a circular economy. This paper reviews recent trends and the development of agro-wastes from plant and animal sources into eco-friendly food packaging systems. Different plant and animal sources and their potential development into packaging are discussed, including crop residues, process residues, vegetable and fruit wastes, and animal-derived wastes. A comprehensive analysis of the properties and production methods of these packages is presented. Future aspects of agro-waste packaging systems and the inherent production problems are addressed.