Drugs and food of natural origin play an important role in public health-care system throughout the world. With aging population, increased middle class in third world countries, and more health-care awareness, consumption of herbal health-care nutraceuticals has increased. The word nutraceutical is a broad term describing foods, food ingredients, and dietary supplements that provide specific health or medical benefits, in addition to the basic nutritional value found in the food. A significant source for nutraceutical ingredients is bioactive phytochemicals like alkaloids (e.g., in tea, coffee), various terpenoids (essential oils like carvacrol, carvone, eugenol, geraniol, menthol), and polyphenols (anthocyanins, flavones, flavanols, isoflavones, stilbenes, ellagic acid, etc.). A variety of these phytochemical compounds form an integral part of the nutraceutical market being antioxidants, and they help in the prevention of many degenerative and chronic diseases. In this review, classification of nutraceuticals, phytochemical classes as nutraceutical ingredients, antioxidants as nutraceuticals, and advantages and drawbacks along with nutraceutical market development during the next decade are discussed.