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Currently, microalgae-derived lutein is gaining attention for its potential applications in cosmeceutical, nutraceutical, pharmaceutical, and food industries. Lutein is of commercial interest for a broad variety of health benefits: antioxidant activity, skin health improvement, reducing age-related macular degeneration, and the treatment of cancer. Microalgae are the fastest-growing lutein source, have the highest content in nature, and are a promising sustainable alternative to the current commercial source, marigold flowers. Microalgal cultivation has added environmental benefits over plants with higher carbon sequestration, reduced water footprint, and no pesticide use. To date, no industrial facility exists for the production of lutein from microalgae. This review outlines the existing technologies for bioprocessing of lutein at pilot scale (cultivation, harvesting, extraction, and purification). In addition, lutein encapsulation, a seldom discussed area, is explored in depth. In view of this knowledge, lutein could be anticipated as the next successful sustainable product from microalgae obtained at industrial scale for the circular economy. [ABSTRACT FROM AUTHOR]