Packaging waste has become a pressing environmental challenge, prompting industries to rethink their material choices and manufacturing strategies. This paper investigates how smart, informed decisions in selecting packaging materials can contribute meaningfully to sustainability goals. Drawing from the recent academic literature and industry reports, this study maps out the evolving landscape of sustainable packaging materials, including biodegradable bioplastics, recycled polymers, and plant-based composites. It explores how material selection affects not just product protection and shelf life but also environmental outcomes across the lifecycle, from raw material sourcing and energy use in manufacturing to post-consumer waste management and circularity. Key trade-offs such as cost, availability, recyclability, and mechanical performance are critically examined. Special attention is given to emerging innovations like nanomaterials, edible films, and agricultural waste-derived packaging that hold promise but face barriers at scale. This paper also reflects on how policy, consumer preferences, and corporate sustainability commitments are reshaping packaging decisions in sectors like food, retail, and e-commerce. Rather than promoting a single “best” material, the analysis emphasizes context-sensitive choices grounded in lifecycle thinking and systems-level impact. By highlighting both the potential and the complexity of material decisions in sustainable packaging, this paper aims to guide researchers, designers, and industry stakeholders toward more responsible, future-focused approaches.