There is world-wide generation of food waste daily in significant amounts, leading to depletion of natural resources and deteriorating air quality. One-third of global food produced is wasted laterally with the food value chain. Carbon footprint is an efficient way of communicating the issues related to climate change and the necessity of changing behavior. Valorization or utilization of food wastes helps in resolving issues related to environment pollution. Reduction in the carbon footprint throughout the chain of food supply makes the whole process eco-friendly. Prevailing food waste disposal systems focus on their economic and environmental viability and are putting efforts into using food waste as a resource input to agriculture. Effective and advanced waste management systems are adopted to deal with massive waste production so as to fill the gap between the production and management of waste disposal. Food waste biorefineries are a sustainable, eco-friendly, and cost-effective approach for the production of platform chemicals, biofuels, and other bio-based materials. These materials not only provide sustainable resources for producing various chemicals and materials but have the potential to reduce this huge environmental burden significantly. In this regard, technological advancement has occurred in past few years that has proven suitable for tackling this problem.

Agro-industrial wastes are generated during the industrial processing of agricultural products. These wastes are generated in large amounts throughout the year, and are the most abundant renewable resources on earth. Due to the large availability and composition rich in compounds that could be used in other processes, there is a great interest on the reuse of these wastes, both from economical and environmental view points. The economic aspect is based on the fact that such wastes may be used as low-cost raw materials for the production of other value-added compounds, with the expectancy of reducing the production costs. The environmental concern is because most of the agro-industrial wastes contain phenolic compounds and/or other compounds of toxic potential; which may cause deterioration of the environment when the waste is discharged to the nature. Although the production of bioethanol offers many benefits, more research is needed in the aspects like feedstock preparation, fermentation technology modification, etc., to make bioethanol more economically viable.

Lignocellulosic biomass (LB) is the renewable feedstock for the production of fuel/energy, feed/food, chemicals, and materials. LB could also be the versatile source of the functional oligosaccharides, which are non-digestible food ingredients having numerous applications in food, cosmetics, pharmaceutical industries, and others. The burgeoning functional food demand is expected to be more than US$440 billion in 2022. Because of higher stability at low pH and high temperature, oligosaccharides stimulate the growth of prebiotic bifidobacteria and lactic acid bacteria. Xylooligosaccharides (XOS) are major constituents of oligosaccharides consisting of 2–7 xylose monomeric units linked via β-(1,4)-linkages. XOS can be obtained from various agro-residues by thermochemical pretreatment, enzymatic or chemoenzymatic methods. While thermochemical methods are fast, reproducible, enzymatic methods are substrate specific, costly, and produce minimum side products. Enzymatic methods are preferred for the production of food grade and pharmaceutically important oligosaccharides. XOS are potent prebiotics having antioxidant properties and enhance the bio-adsorption of calcium and improving bowel functions, etc. LB can cater to the increasing demand of oligosaccharides because of their foreseeable amount and the advancements in technology to recover oligosaccharides. This paper summarizes the methods for oligosaccharides production from LB, classification, and benefits of oligosaccharides on human health.