Every year, the global food industry produces a significant number of wastes and by-products from a variety of sources. By-products from the food-processing sector are produced in large quantities, and because of their undesirable qualities, they are frequently wasted, losing important resources. In order to pursue a circular economy that refers to waste reduction and effective waste management, by-products valorization recently received increased interest. By-products are rich in bioactive compounds and can be used in various industrial applications for health promotion and nutritional benefits. A novel step in its sustainable application is the use of these inexpensive waste agri-food by-products to create the value-added products. The present review intended to summarize the different types of agro-industrial by-products and their properties and highlight their nutritional composition and potential health benefits. Applications of agri-food by-products in foods as well as the potential health and sustainability implications of by-products in food products were also covered. According to research, agri-food by-products can be added to a variety of food to increase their bioactive profile, fiber content, and antioxidant capacity while maintaining good sensory acceptability. Overall, the sustainability of the agri-food chain and consumer health can both benefit from the use of agri-food by-products in food formulation.

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