Tomato processing waste (TPW), a byproduct of the tomato processing industry, is generated in significant quantities globally, presenting a challenge for sustainable waste management. While traditionally used as animal feed or fertilizer, TPW is increasingly recognized for its potential as a valuable raw material due to its high content of bioactive compounds, such as carotenoids, polyphenols and pectin. These compounds have significant health benefits and are in growing demand in the pharmaceutical and cosmetic industries. Despite this potential, the broader industrial utilization of TPW remains limited. This review explores the influence of various processing, pretreatment and extraction methods on the concentration and stability of the bioactive compounds found in TPW. By analyzing the effects of these methodologies, we provide insights into optimizing processes for maximum recovery and sustainable utilization of TPW. Additionally, we address the major challenges in scaling up these processes for industrial application, including the assessment of their ecological footprint through life cycle analysis (LCA). This comprehensive approach aims to bridge the gap between scientific research and industrial implementation, facilitating the valorization of TPW in line with circular economy principles.