As awareness of plastic pollution increases, there is a growing emphasis on sustainable alternatives. Bioplastics and biodegradable plastics have surfaced as potential substitutes. Yet, their limited properties and high production costs hinder their practicality. This paper systematically reviews more than 280 articles to comprehensively outline the advantages and drawbacks of emerging bioplastics and biodegradable plastics, alongside advancements in cleaner production methods. Bioplastics, sourced from renewable materials, decrease dependency on fossil fuels and help lower carbon footprints during production and disposal. Some bioplastics, such as polylactic acid (PLA) and polyhydroxyalkanoates, are compostable, but their manufacturing costs usually surpass that of conventional plastics. Additionally, certain bioplastics exhibit lower mechanical strength, heat resistance, or durability. PLA and bio-polybutylene succinate (bio-PBS) are viable for single-use items and biodegradable products, with scalable production using established technologies, although bio-PBS is somewhat pricier than PLA. Biodegradable plastics lessen environmental impact by naturally degrading and can be composted in industrial settings, providing an eco-friendly disposal option. However, they require specific industrial composting conditions for complete degradation, which can lead to microplastic formation in the environment. PBS, polybutylene adipate terephthalate, and polybutylene succinate-co-adipate seem to be the most promising options, with PBS being a strong contender for replacing traditional plastics due to its biodegradable and compostable nature. It has the potential to be partially or entirely bio-based (bio-PBS). Innovative technologies, especially next-generation industrial biotechnology and microbial cell factories, offer cleaner methods for synthesizing these plastics. This review aids in identifying feasible and sustainable alternatives to conventional plastics.