Grand challenges facing humanity today are closely linked to the rapid exhaustion of natural resources in conjunction with the massive growth of industrial production that sustains the booming world population. The processing of animal skin waste to create collagen-based materials has the potential to provide an eco-friendly method to develop multifunctional materials such as films, sponges/scaffolds, fibers, gels, etc., that could contribute to technological advancements in different sectors. Hence in this review, we present methods for potential improvements in the development of collagen-based materials from a materials science perspective. We explored different possible approaches for utilizing collagen to generate multifunctional materials that exhibit outstanding properties, in combination with mechanical robustness and chemical stability. In sum, this review will present collagen as an eco-friendly resource that can be used to produce multifunctional, recyclable, biocompatible, and biodegradable materials that are ideal for new technologies in materials science, biomedicine, and environmental remediation.