AbstractSouth America is a pivotal supplier of agricultural commodities for a growing world population. This large‐scale production generates a substantial amount of lignocellulosic residue. Inadequate disposal of this material can lead to putrefaction and leaching, and can attract insects and rodents. Solid residues can be treated by incineration or composting – both causing greenhouse gas emissions. Biotransformation of lignocellulosic residues into valuable products has been proposed as a more sophisticated alternative to burning. However, pretreatment steps are necessary to obtain fermentable sugars for biological or thermochemical transformation into value‐added products. In this review, we noted trends in lignocellulosic biomass generation and potential uses, with special attention to the procedures necessary for the generation of fermented products and bio‐oil. This survey pointed out that sugarcane bagasse, cereal straws, bananas, and oil‐palm biomass can generate about 900 million tonnes of biomass by 2025. Based on production data from several researchers it was estimated that these raw materials have the potential for annual production of more than 550 million tonnes of fermentable sugars (i.e., glucose and xylose), 670 million tonnes of bio‐oil, or 4000 TWh of thermal energy. We describe procedures and strategies for the conversion of these residues to produce higher value‐added biomolecules and to promote more sustainable application of lignocellulosic biomass © 2019 Society of Chemical Industry and John Wiley & Sons, Ltd.