Crustacean shell waste, exceeding 6–8 million tons annually, represents a largely underexploited source of chitin and chitosan, biopolymers of recognized functional and economic value. Despite growing interest in sustainable production, eco-friendly extraction routes remain constrained by the lack of integrated frameworks addressing extraction efficiency, polymer quality, environmental performance, and industrial scalability simultaneously. This review critically evaluates conventional and emerging chitin/chitosan extraction technologies from crustacean biomass across six dimensions: yield, degree of deacetylation, molecular weight retention, energy and chemical demand, effluent burden, and technology readiness level (TRL). Enzymatic and fermentation-based routes (TRL 4–6) preserve higher molecular weight but require extended processing times (48–120 h) and face unresolved enzyme-cost barriers. Deep eutectic solvent systems (TRL 3–5) achieve purities exceeding 96% under mild conditions, although scalability and solvent recovery remain limiting. Hybrid integrated configurations emerge as the most technically and economically viable transition pathway. Feedstock diversity, including the underutilized regional resource Grimothea monodon from the Humboldt Current System, was discussed as a candidate resource within circular bioeconomy principles. By linking techno-economic analysis, life-cycle perspectives, and TRL maturity into a unified, decision-oriented framework, this review identifies hybrid biorefinery configurations as the most viable pathway toward scalable, industrially competitive chitin-based production.