The definition of nutraceuticals and their related products generally depends on the source. These products can be classified on the basis of their natural sources, pharmacological conditions, as well as chemical constitution of the products. Most often, nutraceuticals are grouped into four categories that include dietary supplements, functional food, medicinal food, and farmaceuticals.

A dietary supplement represents a product that contains nutrients derived from food products and is often concentrated in liquid, capsule, powder, or pill form. Although dietary supplements are regulated by the United States Food and Drug Administration (FDA) as foods, their regulation differs from that which is involved in drugs and other food products.

According to their generally accepted definition, functional food includes whole foods and fortified, as well as enriched or enhanced dietary components that may reduce the risk of chronic disease and provide a health benefit beyond the traditional nutrients it contains.

Medical food is formulated to be consumed or administered internally. under the supervision of a qualified physician. Its intended use is specific dietary management of a disease or condition for which distinctive nutritional requirements are established by the medical evaluation and on the basis of recognized scientific principles.

Farmaceuticals are medically valuable components produced from modified agricultural crops or animals. The term is a combination of the words “farm” and “pharmaceuticals.” Proponents of this concept are convinced that using crops, and possibly even animals, as pharmaceutical factories is much more cost-effective than conventional methods, with higher revenue for agricultural producers.