Colours are being used in the food industry not only to increase the intensity of the physical appearance of food but also to protect it from oxidative and light-induced damage. In present food market, the acceptability of chemically synthesized food colour is gradually decreasing due to several health issues. So, the need for natural organic colours has flourished to the food industry. The advantage of using microbial colours in the food industry over other natural sources lies on their user-friendly and cost-effective handling conditions. This review assembles the details of different types of microbially originated colours used in the food industry and how to improve their industrial production. Pigments like riboflavin, melanin, chlorophyll, and phycobilins are widely used in the food industry for colouring purposes. The production of these pigments depends on various physiological and environmental factors. All categories of microorganisms like bacteria, algae, and fungi are industrially used for the production of microbial pigments. Impact of this article on research for societal benefits: Natural colours produced from different types of bacteria, algae, and fungi are now being commercialized for use in the bakery, confectionery, and beverage industries. In this review, we have discussed the varieties of microbial pigments currently being used in the food industry and their industrial production parameters with their related advantages and disadvantages. The projected modifications at the production level have also been discussed here. This detailed knowledge may help food industrialists as well as household cooks to select organic food colour with lesser health impact. This review gives the idea about the present position of microbial pigment in the food industry at a glance.