The eco-sustainable use of materials derived from agricultural and food processing waste will represent one of the most stimulating challenges shortly. Chitin and chitosan are two remarkable examples of how molecules with high added value can be extracted from food waste, such as crustaceans’ shells, fungi, mollusks, etc. This Perspective summarizes the current state of knowledge about chitin extraction, chitosan production, and hydrogel formation, highlighting the environmental critical steps in the common route (use of strong acids and basis, toxic solvents, and not eco-friendly crosslinkers). At the same time, promising green alternatives are described and analyzed. Examples are the employment of NADESs or DESs (such as choline chloride: urea or choline chloride: organic acids mixtures) for chitin extraction and dissolution, use of citric acid both in chitin extraction and hydrogel formation or utilization of natural extracts, like genipin, as green cross-linkers under mild conditions (heating at 37 °C for 12 h). In particular, this perspective aims to provide a stimulating basis for the development of processes based on the recycling and reusing of chemicals, during the different preparation steps, in line with “system chemistry” and “circular economy” principles.