Climate change is accelerated by increasing food waste; more importantly, this pressing challenge is compounded by the environmentally damaging effects of conventional plastics used in food packaging. We have critically reviewed active release packaging as an innovative solution to address these concerning effects. Particular attention is paid to controlled release, encapsulation methods, and natural active agents. Other aspects of active packaging development such as stringent safety legislations are also discussed, alongside highlighting developmental hurdles. Certain technologies are underscored as revolutionary for the field of active packaging: in particular, stimuli-responsive materials, reliable controlled-release mechanisms, and the synergy of active packaging and intelligent packaging. Encapsulation is described as an important method of achieving controlled release. The potential of electrospun biopolymeric fibers to encapsulate natural antimicrobial or antioxidant molecules is also noted. Importantly, the review discusses the incorporation of nanomaterials and subsequent increased commercialization success due to the modulation of Bioplastic properties. In order to outcompete inexpensive petroleum-based plastics, these novel packaging materials must have good mechanical properties, good barrier properties, well-defined controlled release studies, and good biodegradation rates. Overall, it is evident that biopolymeric active-release packaging incorporating natural active compounds will serve as a high-potential, sustainable replacement for ubiquitous petroleum-based plastics.