In this work, the renewable synthesis of p-xylene (PX) from biomass-derived carbohydrates has been reviewed. PX is a crucial chemical feedstock and an essential starting material of polyethylene terephthalate (PET). PX can be produced selectively by the Diels-Alder reaction between ethylene and 2,5-dimethylfuran (DMF) followed by catalytic dehydration of the oxanorbornene adduct. DMF is primarily produced by the catalytic hydrogenation of 5-(hydroxymethyl)furfural (HMF), a furanic intermediate produced by the acid-catalyzed hydrolysis/dehydration of biomass-derived hexoses. With ethylene being sourced by dehydrating bioethanol, PET can be made biorenewable in its entirety. The atom economy and carbon efficiency of converting glucose into PX have been calculated. The existing literature (both theoretical and experimental) on the catalytic production of PX from DMF and ethylene are summarized, and future directions on this research have been proposed. The effect of Bronsted and Lewis acidity, porosity, and surface area of the heterogeneous catalysts on the selectivity and yield of PX have been highlighted. In addition, the techno-economic analysis of renewable PET, its future prospects based on the petroleum market, and the possibility of a circular economy of PET using chemical and enzymatic recycling strategies have been discussed.