Globally, the amount of food processing waste has become a major concern for environmental sustainability. The valorization of these waste materials can solve the problems of its disposal. Notably, the tomato pomace and crustacean processing waste presents enormous opportunities for the extraction of commercially vital carotenoids, lycopene, and astaxanthin, which have diverse applications in the food, feed, pharmaceuticals, and cosmetic industries. Moreover, such waste can generate surplus revenue which can significantly improve the economics of food production and processing. Considering these aspects, many reports have been published on the efficient use of tomato and crustacean processing waste to recover lycopene and astaxanthin. The current review provides up-to-date information available on the chemistry of lycopene and astaxanthin, their extraction methods that use environmentally friendly green solvents to minimize the impact of toxic chemical solvents on health and environment. Future research challenges in this context are also identified.