Initially, Petroleum based material such as plastics had been widely used as a dominating packaging material due to lightweight, durability, cost effectiveness and versatility. But, the increase in concern over environmental sustainability on a worldwide scale has led to a great deal of interest in creating sustainable packaging materials as substitutes for conventional petroleum-based ones. Cellulose has become a viable option for environmentally friendly packaging since it is made from renewable resources including wood, plants, and farm waste due to unique properties of cellulose, which make it a sustainable option for a range of packaging applications, including its renewability, biodegradability, and adaptability. It has been utilized in packaging in different forms such as nanocellulose fibers used as reinforcement in packaging, cellulose based films, cellulose fibers, packaging films containing cellulose crystals, etc. However, researchers from all over the world have aimed to overcome challenges faced by using cellulose as a packaging material in food and beverage industry such as sensitivity to moisture, cost considerations and inadequate barrier properties.