The growing consumer concern about health has increased interest in food products free of additives, driving the clean-label concept. Algae biomass can offer several compounds for this context, including proteins and pigments. Algal proteins are recognized for their high biological value, demonstrating several health benefits. Proteins and other components constituted in algae biomass contribute to achieving desired structural and rheological properties in food matrices. Microalgae pigments such as phycobiliproteins, carotenoids, and chlorophylls can replace artificial colorings used in the food industry. Besides, microalgae proteins have the potential for the development of innovative materials to be applied in food packaging. Thus, using algae as a protein source in food products becomes an approach with different functionalities for the clean-label trend. The possibility of promoting nutrition and health while coloring and preserving food make algae protein an ingredient with high innovation potential for the food industry. This review article focuses on microalgae and macroalgae as a source of proteins and biomass for use as a natural ingredient within the clean-label trend. This review also brings the potential of proteins in packaging and coatings and the main challenges in using algae biomass as a clean-label ingredient.