In order to reveal circulating status of function claims of health foods, and to provide corresponding suggestions to support development of the industry, all products and enterprises certified to produce health foods were investigated. The results showed that the industry was developing at a rate above 10 percent in recent years, especially in 2003. The sales of health food products attained about 21 billion and the taxation exceeded 5.3 billion. Circulating rate of function claims stayed about 56 percent. However, most claims concentrate on a few functions, such as enhancing immunity, alleviating physical fatigue, improving child growth, assisting blood lipids reduction, postponing aging and facilitating alleviation of constipation for function foods, and supplying zinc, calcium, iron, multivitamins and multi-minerals for nutrient supplements simultaneously. Both theory and practice confirm that the industry is a promising industry, but it needs more policy support, induction and function recognizing. Enterprises should pay more attention as weU as funds to product research and development.