In the fast-developing time, the accumulation of waste materials is always in an uptrend due to population increases and industrialization. This excessive accumulation in waste materials harms the ecosystem and human beings by depleting water quality, air quality, and biodiversity. Further, by use of fossil fuel problem-related global warming, greenhouse gases are the major challenge in front of the world. Nowadays, scientists and researchers are more focused on recycling and utilizing different waste materials like a municipal solid waste (MSW), agro-industrial waste etc. The waste materials added to the environment are converted into valuable products or green chemicals using green chemistry principles. These fields are the production of energy, synthesis of biofertilizers and use in the textile industry to fulfil the need of the present world. Here we need more focus on the circular economy considering the value of products in the bioeconomic market. For this purpose, sustainable development of the circular bio-economy is the most promising alternative, which is possible by incorporating the latest techniques like microwave-based extraction, enzyme immobilization-based removal, bioreactor-based removal etc., for the valorization of food waste materials. Further, the conversion of organic waste into valuable products like biofertilizers and vermicomposting is also realised by using earthworms. The present review article focuses on the various types of waste materials (such as MSW, agricultural, industrial, household waste, etc.), waste management with current glitches and the expected solutions that have been discussed. Furthermore, we have highlighted their safe conversion into green chemicals and contribution to the bioeconomic market. The role of the circular economy is also discussed.