Microalgae biotechnology applied to pigment production still needs to alleviate technological bottlenecks before it can fully deliver on its sustainability promises. Therefore, this chapter reviewed the environmental performance of industrial production of microalgae-based pigments (β-carotene, astaxanthin, and phycocyanin) using life cycle assessment tools. Furthermore, the environmental performance of the main microalgae pigment in the spotlight in present time, β-carotene, was discussed in comparison with its main counterparts (synthetic and palm oil) under the planetary boundaries concept. In the end, this chapter highlighted the need for research and development in the field of integrated environmental assessment with planetary boundaries as an encouraging tool to elucidate whether microalgal-based pigments can be unquestionably used as a sustainable bioresource.