Research work needs to be carried out to formulate the fermentation media for each bacterial pigment on large scale by using economical and easily available sources for commercial process. Recent advances in synthetic biology, metabolic engineering efforts of bacteria will greatly expand the pigments that could be produced economically in sufficient amounts for industrial application. This review summarizes the current technology status and challenges, economics, novel strategies for production of bacterial pigments and metabolic engineering of bacteria with a focus on applications of bacterial pigments in food industry, pharmaceutical industry, dyeing as well as on other applications.