The shrimp processing industry represents the largest fisheries sector globally due to its high demand and market value. Generally, the only shrimp parts that are often produced in factories are in the form of headless and peeled shrimp (shrimp without skin and head), about 88.5%. During processing, by-products are produced and require proper treatment. Shrimp by-product production has increased dramatically in recent years, leading to waste collection, disposal and pollution problems. The trend of utilisation of shrimp by-products needs to be carried out because these by-products have the potential to produce innovative products that have added value and are sustainable. By-products such as shrimp heads and shells contain proteins, minerals, fats, amino acids and bioactive compound components that can be used as additives and raw materials. The purpose of this paper is to examine the potential utilization of shrimp processing industry by-products. By converting these by-products into value-added products such as bioplastic, flavouring, natural food pigments, shrimp oil, and protein hydrolysates. Processing using various conventional and enzymatic extraction methods has the potential to reduce by-products. Utilisation of shrimp by-products can provide an attractive alternative to reduce dependence on synthetic products in the food industry, while providing the added benefit of more efficient and environmentally friendly by-product management.