This study presents a comprehensive characterization of phycoerythrin (PE), the predominant phycobiliprotein derived from Porphyridium purpureum, a unicellular red microalga. The research explores the potential applications of PE, which exhibits a wide range of beneficial properties. Despite its recognized potential, a detailed understanding of PE's characteristics is still lacking. To bridge this knowledge gap, P. Purpureum was grown and phycoerythrin was extracted and concentrated to 0.3 mg/mL. Subsequently, PE was evaluated for its antiproliferative activity against the HEPG2 cell line, a representative model for hepatic cancer. In addition to characterization, the study introduced a novel technique called electrospray for encapsulating the pigment. The encapsulation process was optimized, and the efficiency and stability of the capsules were assessed. The results revealed that the pigment exhibited remarkable antiproliferative activity, and an encapsulation efficiency of 99% was achieved. The encapsulation process significantly improved the stability of phycoerythrin, making it suitable for incorporation into food products. This opens new opportunities to leverage its bioactivity for enhancing human and animal health. The findings highlight the therapeutic and functional properties of P. purpureum-derived phycoerythrin, and its incorporation into food and cosmetic products holds promise for promoting health and well-being. The study serves as a foundation for further exploration and development of P. purpureum-derived phycoerythrin as a versatile and valuable bioactive compound.