The development of more sustainable material solutions is one of the key challenges today. New materials are subject to an overall risk assessment of which their impact on the environment is an important aspect. The biodegradability of a material may support a positive risk assessment. Water-soluble and water-dispersible polymers are widely used in daily life in a very broad range of applications. In anticipation of a further tightening of regulatory requirements and as a consequence of the introduction of sustainability targets in industry, in the next decade or so, industry targets to replace the currently used and predominantly non-biodegradable high value water-soluble and water-dispersible polymers by biodegradable alternatives, wherever sustainably possible. This review provides an overview of the currently used water-soluble and water-dispersible polymers in detergent formulations for home care, in water treatment and in crop protection. These polymers have been engineered to near perfect performance at minimum costs. We address the challenges faced when introducing biodegradable alternatives in existing product value chains, and we highlight opportunities to further improve and fine-tune the biodegradation of these materials. This overview is intended to contribute to the development of novel biodegradable water-soluble and water-dispersible polymers, both at academia and industry.