Group contribution methods (GCMs) provide a practical and computationally efficient approach for predicting thermodynamic properties of hydrocarbons, especially when experimental data are scarce. This review evaluates the evolution of GCMs from classical first-order schemes (e.g. Lydersen method, Joback method) to more advanced second-order frameworks (e.g. CG94, Sharma method), hybrid extensions, and emerging machine learning integrations. While first-order models are simple and widely used, these models struggle with branched and long-chain molecules. Second-order approaches significantly improve structural sensitivity and predictive accuracy, achieving deviations below 2–3% for critical properties and within 1 kcal/mol for formation enthalpies of branched alkanes. Nevertheless, challenges remain in extrapolating to highly complex molecules, underrepresented functional groups, and extreme conditions. Promising directions include reinforcement of second-order GCMs with molecular theory, systematic expansion of experimental and quantum-based datasets, and hybrid GCM–machine learning models that retain interpretability while improving generalisability. We recommend prioritising models that balance accuracy, robustness, simplicity, and transferability to accelerate sustainable process and product designs, particularly in applications such as fuel upgrading including hydroisomerisation, separation processes, and green chemical development.