Food spoilage is one of the key concerns in the food industry. One approach is the improvement of the shelf life of the food by introducing active packaging, and another is intelligent packaging. Detecting packed food spoilage in real-time is key to stopping outbreaks caused by food-borne diseases. Using active materials in packaging can improve shelf life, while the nonharmful color indicator can be useful to trace the quality of the food through simple color detection. Recently, bio-derived active and intelligent packaging has gained a lot of interest from researchers and consumers. For this, the biopolymers and the bioactive natural ingredient are used as indicators to fabricate active packaging material and color-changing sensors that can improve the shelf life and detect the freshness of food in real-time, respectively. Among natural bioactive components, carotenoids are known for their good antimicrobial, antioxidant, and pH-responsive color-indicating properties. Carotenoids are rich in fruits and vegetables and fat-soluble pigments. Including carotenoids in the packaging system improves the film's physical and functional performance. The recent progress on carotenoid pigment-based packaging (active and intelligent) is discussed in this review. The sources and biological activity of the carotenoids are briefly discussed, and then the fabrication and application of carotenoid-activated packaging film are reviewed. The carotenoids-based packaging film can enhance packaged food's shelf life and indicate the freshness of meat and vegetables in real-time. Therefore, incorporating carotenoid-based pigment into the polymer matrix could be promising for developing novel packaging materials.