This review summarizes recent development of functional materials to improve the barrier properties of paperboard with emphasis on bio-based polymers. Focus is directed to novel application techniques and water-borne, renewable coating materials. Some aspects on substrate properties and the requirements on food packaging are discussed as are the processability, convertability, recyclability and biodegradability of packaging materials. The functionality, advantages and disadvantages of several bio-based polymers are presented in detail. Among these are starch and cellulose derivatives, chitosan, alginate, wheat gluten, whey proteins, polycaprolactone, poly(lactic acid) and polyhydroxyalkanoates. Also discussed is the enhancement of barrier properties by incorporation of nanosized materials, by application of thin protective top coatings and local reinforcement by self-healing agents.