Plastic materials dominate the packaging sector in all domains due to their versatile properties. However, with a surge in environmental issues caused by the extensive usage of plastics, a shift towards adopting eco-friendly alternatives has been ongoing. One such sustainable alternative taking over the global market is Biodegradable packaging materials (BPMs). This chapter explores the processing parameters of commonly used BPMs while clearly differentiating between biobased and biodegradable plastics. Besides, a summary of its presence in the global market has been expanded with regard to the world’s major economies, while also listing out the ongoing trends and factors affecting consumer acceptability in this market. Further, the environmental impact of these materials, along with an overview of the general mechanism of the biodegradation process, has been detailed. Last but not least, the life cycle assessment of BPMs, as well as their safety aspects, outlining the standards and guidelines being formulated across the globe, have been briefly discussed while also raising the potential issues that should be given due consideration to avoid adverse consequences.