Packaging is often criticized as a symbol of today’s throwaway society, as it is mostly made of plastic, which is in itself quite controversial, and is usually used only once. However, as packaging’s main function is to protect its content and 30% of all food produced worldwide is lost or wasted along the supply chain, optimized packaging may be one of the solutions to reduce this staggering amount. Developing countries struggle with losses in the supply chain before food reaches the consumer. Here, appropriate packaging may help to protect food and prolong its shelf life so that it safely reaches these households. In developed countries, food tends to be wasted rather at the household’s level due to wasteful behavior. There, packaging may be one of the drivers due to inappropriate packaging sizes and packaging that is difficult to empty. When discussing the sustainability of packaging, its protective function is often neglected and only revolves around the type and amount of material used for production. In this review, drivers, issues, and implications of packaging-related food losses and waste (FLW) are discussed, as well as the implication for the implementation in life cycle assessments (LCA).