This chapter investigates the application of circular economy (CE) techniques to reduce food packaging waste along the supply chain and address environmental challenges caused by traditional linear models. It focuses on innovative and sustainable materials, economic and social considerations, and waste management strategies to reduce environmental pollution, maintain food quality and safety, and minimize food losses and waste. The discussion also covers intelligent and smart packaging, biodegradable and bio-based materials, nanoengineered material (e.g., Carbon dots), artificial intelligence (AI) designed new materials, Three-Dimensional (3D) and Four-Dimensional (4D) printed materials, reusable systems, advanced recycling technologies and recent applications of Internet of Things (IoT) and AI in supply chain management, improving recycling processes, and enabling intelligent packaging solutions. The chapter emphasizes the importance of moving from linear to circular systems to increase resource efficiency and waste prevention. The role of the food packaging industry in preserving food quality during storage and global supply chain, its significant contribution to environmental pollutions, particularly through sustainable non-biodegradable materials are discussed. Case studies, applications, barriers to adoption, and strategies for scaling up sustainable practices, consumer behavior, policy supports, technological developments, and economic impacts are also mentioned. The chapter concludes by describing future research trends and the potential for cross-sector collaboration to promote sustainable innovation in the field of food packaging.