Food waste is a pressing global challenge leading to over $1 trillion lost annually and contributing up to 10% of global greenhouse gas emissions. Extensive study has been directed toward the use of active biodegradable packaging materials to improve food quality, minimize plastic use, and encourage sustainable packaging technology development. However, this has been achieved with limited success, which can mainly be attributed to poor material properties and high production costs. In the recent literature, the integration of silver nanoparticles (AgNPs) has shown to improve the properties of biopolymer, prompting the development of bionanocomposites. Furthermore, the antibacterial properties of AgNPs against foodborne pathogens leads towards food shelf-life improvement and provides a route towards reducing food waste. However, few reviews have analyzed AgNPs holistically throughout a portfolio of biopolymers from an industrial perspective. Hence, this review critically analyses the antibacterial, barrier, mechanical, thermal, and water resistance properties of AgNP-based bionanocomposites. These advanced materials are also discussed in terms of food packaging applications and assessed in terms of their performance in enhancing food shelf-life. Finally, the current barriers towards the commercialization of AgNP bionanocomposites are critically discussed to provide an industrial action plan towards the development of sustainable packaging materials to reduce food waste.