Natural pigments are widely utilized as food additives nowadays to impart color or improve the taste of the food products. These pigments are significant food compounds used in the food industry due to their diverse nutritional and functional attributes. Color is the essential part of any food as it affects the consumer acceptability of the products. Recently consumer interest has shifted towards natural pigments as food colorants due to their high safety margins. Food industries prefer the use of natural pigments for foods and drinks owing to the harmful and undesirable effects of artificial pigments. These pigments include betalains-betaxanthin, betacyanin, flavonoids–anthocyanins, carotenoids–lutein, zeaxanthin, β-carotene, and chlorophylls-chlorophyllins, etc. There are some restrictions associated with the use of natural pigments based on the source of the pigment, quantity, and product nature. This review illustrates applications of permitted pigments in diversified food models and highlights their advantages as food ingredients.