The growing interest in backscatter communications as a low-powered solution in various fields necessitates pushing the envelope of current backscatter systems in multiple frontiers, among which is spectral efficiency. The increase in spectral efficiency can drive real-time applications such as augmented reality. In most of backscatter-system applications such as radio-frequency identification, backscatter modulation is implemented using binary schemes realized with square pulses, which are not spectral efficient. To address the spectral efficiency concern, this article reviews-with a scope limited to prototyped systems-some of the existing works in the literature that pertain to increasing the spectral efficiency of backscatter systems. The prototyped systems can be grouped-based on the implementation technique used-into three groups: High-order modulation, single-sideband modulation, and pulse shaping. Based on the current trends and studied literature, the article concludes with discussions on some future directions and open-ended research problems such as optimal pulse shaping, the use of artificial intelligence, multi-carrier modulation, and agile modulation; which are all aim for overcoming the spectral-efficiency limit of contemporary backscatter systems.