In this study, the physical and chemical properties and bioavailability of lutein have been summarized, with the novelty of this work being the review of lutein from production to extraction, through to preservation and drying, in order to deliver a functional food ingredient. The potential health functions of lutein have been introduced in detail. By comparing algae and marigold flowers, the advantages of algae extraction technology have been discussed. In this article, we have introduced the use of closed-loop spray drying technology to microencapsulate lutein to improve its stability and solubility. Microencapsulation of unstable substances by spray drying is a potentially useful direction that is worth exploring further.