Food packaging is one of the leading sectors for the end use of plastics. Bioplastic is produced from natural renewable resources such as crops, wood pulp, and herbaceous fibers. This article summarizes the rational design of bioplastics from natural resources for food packaging. The bioplastic properties considered include thermal properties, mechanical performance, oxygen/moisture resistance, and biodegradability. Bioplastic degradability and technologies for handling bioplastic waste are discussed. Various aspects of the sustainability of bioplastics (e.g., environmental profile, techno-economic analysis, and societal impact) are investigated. The main challenges of bioplastic application, such as low fracture strain and inferior barrier properties, are discussed. Mitigation approaches to overcome the mechanical properties of bioplastics, such as adding plasticizers, are also discussed. Bioplastic can have properties comparable with fossil-based plastics. Bioplastic can be an alternative to conventional plastic in most applications of food packaging, which can reduce the carbon footprint and environmental impact because of its biodegradability.