In recent years, the global production and industrialization of avocados has led to the generation of large numbers of peel, seeds, and leaf by-products with significant environmental implications. Current efforts, including the Sustainable Development Goals, aim towards the development of sustainable operations through the valorization of waste. Previous research has focused on studying the rich chemical composition of these avocado by-products. Current studies are working on the isolation of polyphenols, flavonoids, phenolic acids and other bioactive compounds found in avocado peel, seeds and leaves for applications in nutraceutical products in the food, pharmaceuticals and cosmetics industries. The inclusion of these extracts in industrial matrices often requires stabilization technologies such as encapsulation emulsions to ensure the delivery and bioactivity of these target compounds. This review will discuss the global production volumes of avocado and its by-products as well as the potential inclusion in various industries based on their chemical compositions. Additionally, this work addresses the various applications that have been previously proposed for the wastes and their extracts. This review also covers the stabilization techniques previously employed in avocado extract treatment, their applications, and the current challenges and opportunities associated with avocado by-products.