From formulation to packaging, the cosmetics industry has been shifting towards greener production. Due to their photoprotection, antioxidant, and antiaging properties, microbial pigments have multiple applications in the cosmetics industry, including inhibiting melanogenesis and functioning as natural colourants for cosmetics, as some microorganisms are pigment-rich. To determine the safety and efficacy of using microbial pigments in cosmetics, additional research is required. Furthermore, it is necessary to obtain information about DNA sequencing, metabolic pathways, and genetic engineering. Additionally, this review emphasizes on the importance of investigating distinct habitats for novel pigments and new producing strains. Thus, novel microbial pigments may be of interest to the cosmetics industry, as they are ideal for future products with beneficial health effects.