The incorporation of bioactive ingredients in food products has attracted considerable interest in recent years because of the numerous health benefits these compounds can offer to the human body. Carotenoids are a group of functional components with notable antioxidant and anti-inflammatory properties. Their addition to food products not only provides coloration but can also deliver certain bioactive effects, leading to both increased shelf life and beneficial health benefits. However, carotenoids are prone to oxidation, as they can be easily degraded from light or heat treatments. To address this, encapsulation has emerged as an effective method to protect carotenoids during their incorporation into foods as well as during storage. This review provides a comprehensive overview of the current state of the art regarding encapsulation methods utilized for carotenoids entrapment. The effect of various techniques- such as microemulsification, freeze- drying, spray- drying, and novel nanoencapsulation methods like electrospinning and formation of solid-liquid nanoparticles- are discussed with respect to their positive and negative impacts on carotenoid antioxidant activity, bioaccessibility, bioavailability and the shelf life of the final product. Depending on the type of carotenoid or its intended application, different methods could be employed, which could significantly enhance the overall biological activities of the final food product. This review critically presents the advantages and limitations of each method and highlights the potential health implications that nanoencapsulation techniques might pose before introducing new encapsulated products to the food market.