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With a growing population of about 7.8 billion, humans are generating tons of waste in the form of non-biodegradable plastics on a daily basis that ends up in landfills and oceans. The introduction of packaging has been a blessing to mankind by facilitating the ease of convenience in transportation, delivery and general usage. The downside, however, is that majority of the packaging currently available is harmful to the environment and takes thousands of years to decay. This paper discusses the use of chitosan from shrimp shells and other marine animals' exoskeleton waste in food packaging industries. Chitosan extracted from marine organisms is modulated in the form of packaging material. Compared to conventional packaging, chitosan films are 73.4% biodegradable in soil under laboratory conditions whereas 100% degraded in an open field. Chitosan with metal oxides, essential oils, natural extracts, proteins and other polymers show enhanced tensile strength, water vapor permeability, oxygen and ultraviolet barrier. Chitosan and composite film show antimicrobial activity against gram positive and negative bacteria. Comparative approaches on environmental impacts between conventional plastics and chitosan films are enlightened, thereby highlighting the importance of natural polymers as packaging films that are considered economic based on the addition of additives. [ABSTRACT FROM AUTHOR]