Plastic food packaging causes massive pollution in the environment via resource extraction, gas emissions, and the enduring plastic waste accumulation. Hence, it is of crucial importance to discover sustainable alternatives in order to protect ecosystems and conserve precious resources. Recently, seaweed has been emerging as a promising sustainable solution to plastic pollution. Seaweed is a fast-growing marine plant that is abundant in tropical coastlines and requires minimal resources to cultivate. In addition, seaweed is rich in valuable polysaccharides such as alginate, fucoidan, carrageenan, agar, and ulva, which can be extracted and processed into biodegradable films, coatings, and wraps. This ability allows the creation of an alternative to plastic food packages that are completely biodegradable, made from renewable resources, and do not linger in landfills or oceans for centuries. In this context, this review discusses the main classification of seaweed, their production and abundance in the world, and provides a summary of seaweed-based materials developed in the last 2–5 years for potential usage in the food packaging sector.