Food production and processing in developing countries generate high levels of waste and byproducts, causing a negative environmental impact and significant expenses. However, these biomaterials have ample potential for generating food additives which in turn will minimize malnutrition and hunger in the developing countries where it is produced. Many of these biomaterials are a source of valuable compounds such as proteins, lipids, starch, micronutrients, bioactive compounds, and dietary fibers. Additionally, antinutritional factors present in some byproducts can be minimized through biotechnological processes for use as a food additive or in the formulation of balanced foods. In this context, the use of these biomaterials is a challenge and provides great opportunity to improve food security. The purpose of this review is to project the potential of food waste and byproducts as a sustainable alternative to reduce malnutrition and hunger in developing countries.