AbstractBACKGROUNDNorbixin, a carotenoid extracted from annatto seeds, is widely utilized as a natural pigment in foods, cosmetics and medicines. Its water solubility is relatively high under neutral or alkaline conditions but low under acidic conditions, which limits its application in some food products.RESULTSThis problem was overcome by utilizing liposomes to encapsulate the carotenoids so that they could be easily dispersed within acidic solutions. The norbixin was loaded into the liposomes using the pH‐driven method. Liposomes were produced by passing aqueous phospholipid dispersions through a microfluidizer under high pressure. Norbixin was then added to the liposome dispersions at pH 7.0 and then driven into the hydrophobic domains of the phospholipid bilayers by acidifying the system. Measurements of the encapsulation efficiency showed that the norbixin was successfully loaded into the liposomes using the pH‐driven method. X‐ray diffraction analysis showed that the norbixin was in an amorphous state after incorporation into the liposomes. Encapsulation of norbixin within the liposomes was also shown to increase its water dispersibility and chemical stability under acidic pH conditions.CONCLUSIONThe pH‐driven method therefore provides a useful means of increasing the application of this bioactive carotenoid within functional foods and other products. © 2021 Society of Chemical Industry.