The crafting interface
There will be a robust Crafting system in Starbound, allowing players to create items using a large variety of materials. Tiy, one of the creators of the game, has said that the number of items the player will be able to craft will most likely go into the thousands.
Here is a list of all crafting recipes.
Mechanics
The player will gather the required resources and materials needed and will proceed to open a crafting interface. Inside, they will find options to create the item that they desire.
Another set of items in the crafting interface
Materials/Items
The materials scattered across the galaxy will vary greatly from each other. The player may find a specific powered crystal on one planet, and maybe a rare plant on another.
The items will also vary greatly from each other. In the crafting picture, we see hazmat suits, lucky pants, a rawhide cowboy hat, a (bigger on the inside) backpack, an air tank, and more. The possibilities of craftable items are almost infinite!
Food
The food crafting interface
For more information on crafting food, see Cooking
Food crafting will be done at a kitchen counter with crops, meat and other materials. Some of these foods will require cooking to reap the full benefits, though.
Benefits include Hot Feet (Burning that provides a speed boost, paired with Regeneration that outlasts the Burning.), Regeneration, and Speed Boost.
Weapons
Weapons can be created using iron ore upwards at the crafting table, these are essential to the game as they are needed for game progression via fighting mobs and bosses.