Asia is the largest producer of shrimp, accounting for 70% of the global cultured production. The market for shrimp has a high demand and the by-products from shrimp processing make up 40–60% of the whole shrimp. The main by-products include the head, viscera, shell, pelopods, tail, cephalothorax, and exoskeleton. The trends of the future and hurdles of shrimp by-product utilization have been outlined. These by-products are a good source of protein and have anti-inflammatory, anti-fungal, and anti-oxidant properties. They also enhance the immune system and have bioactive compounds that encourage their use for anti-cancerous, anti-hypertensive, and various other diseases. The waste produced can yield valuable by-products, including astaxanthin, oil, carotenoids, fortified products, nutrient-enriched chitin, protein, flavor enhancers, and composite flour. The yield of astaxanthin is 59.97 µg/g along with carotenoid is 68.26 µg/ml dw, chitosan (87%), protein (47.8%), oil extracted (88.9%) from shrimp by-products, and shrimp head is a rich source of protein (66%) and chitin (6%). These by-products can help meet the growing demand of an increasing population. The abundance of healthy ingredients found in shrimp makes it a valuable resource for scientists, entrepreneurs, and industrialists to develop new products. Additionally, utilizing shrimp waste can help reduce the burden on the earth and decrease environmental pollution.