Categories Hierarchy and Widget

I have a large amount of different categories and I noticed that the only category that shows up on the listing page is the one that’s highest in alphabetical order. So if I have a product with multiple categories that user can’t see it. Is there a was to show the category hierarchy on the listing page?

I was also wondering if it would be possible to add a dropdown menu option for the PP Categories widget. When I use the widget it creates a long block that leaves a lot of blank space in the content section. It would be really nice if we could set featured categories too.

Thanks