Production of value-added products from waste anaerobic digestate is economically and environmentally important for sustainable development of industrial process and products. In this study halophilic microalgae, Chlorella vulgaris 92001, Chlorella vulgaris 50291, Chlorella vulgaris 10241 and Tetraselmis indica, were initially screened for lutein production using synthetic dairy digestate (DD), municipal digestate (MD) and poultry digestate (PD) as no-cost substrates. Screening and optimization of parameters, such as dilution, pH, MgCl2, NaCl, NaHCO3 and inoculum concentration for maximum lutein production were further performed employing statistically designed Plackett-Burman and response surface methodology. Cultivation of C. vulgaris 92001 in a split column photobioreactor under optimum culture condition showed increase in lutein production by 2.36-fold in batch mode. The influence of different hydraulic retention time (HRT) values of 150, 130, 100 and 90h on lutein production was evaluated in continuous mode with the split column photobioreactor. Lutein produced using the synthetic poultry digestate showed good potential biopesticide activity against Spodoptera litura (fall armyworm). Overall, this study demonstrated bioprocess development to produce lutein using synthetic anaerobic digestate from marine algae and its potential application as a biopesticide.