The color of food and drinks is important, as it is associated with freshness and taste. Despite that natural colorants are more expensive to produce, less stable to heat and light, and less consistent in color range, natural colorants have been gaining market share in recent years. The background is that artificial colorants are often associated with negative health aspects. Considerable progress has been made towards the fermentative production of some colorants. Because colorant biosynthesis is under close metabolic control, extensive strain and process development are needed in order to establish an economical production process. Another approach is the synthesis of colors by means of biotransformation of adequate precursors. Algae represent a promising group of microorganisms that have shown a high potential for the production of different colorants, and dedicated fermentation and downstream technologies have been developed. This chapter reviews the available information with respect to these approaches.