This review details the extraction, characterization and utilization of seaweed-derived biopolymers for future packaging applications. The review is contextualized within the broader scope of the challenge of plastic pollution and the current urgent need for more sustainable packaging materials. Macroalgae (or seaweed) has been highlighted as a promising source of biopolymers, most commonly sodium alginate, agar and carrageenan, for reasons such as a rapid growth rate and decreased environmental impact when compared to terrestrial plant-life. Extraction methods detailed include the traditional solvent-based extraction to more sustainable developments such as ultrasound assisted extraction, microwave assisted extraction and bead milling. The review additionally presents the characterization techniques most pertinent in determining the applicability of these biopolymers in packaging applications. Properties of key importance to the development of sustainable packaging materials such as thermal properties, mechanical strength, barrier properties and biodegradability are highlighted in comparison to conventional petroleum-based plastics. This review concludes by realistically identifying the challenges faced by implementing seaweed-based biopolymers into packaging structures, such as cost-effectiveness, scalability, performance while suggesting future directions to mitigate these issues and improve the commercial viability of these materials for the packaging industry.