For many years, conventional plastics are manufactured and used for packaging applications in different sectors. As the food industries are increasing, the demand for packaging material is also increasing. Plastics have transformed the food industry to higher levels; however, conventional petroleum-based plastics are non-degradable which has created severe ecological problems to the environment like a threat to aquatic life and degrading air quality. Biodegradable polymers or biopolymers emerged as an alternative approach for many industrial applications to control the risk caused by non-biodegradable plastic. According to the type of starting material, they have been categorized as polymers extracted from biomass, synthesized from monomers, and produced from microorganisms. The quality of biopolymers depends on the physical, mechanical, thermal, and barrier properties. The present review highlights the characteristics of various biopolymers and their blends, comparison of properties between non-biodegradable and biopolymers, the market potential for food packaging applications. The review also emphasizes different commercial forms like films, trays, bags, coatings, and foamed products for application as modified atmosphere packaging, active packaging, and edible packaging. Different issues affecting market growth like harmful products formed during production and consumer perception have also been discussed. Information on biopolymers is widely scattered over many sources, this article aims to provide an overview of biodegradable polymer packages for food applications.