The shock-compression of reactive powder mixtures can yield varied chemical behaviour with occurrence of mechanochemical reactions in the time-scale of the high-pressure state, or thermochemical reactions in the time-scale of temperature equilibration, or simply the creation of densepacked highly reactive state of material. The principal challenge has been to understand the processes that distinguish between mechanochemical (shock-induced) and thermochemical (shock-assisted) reactions, which has broad implications for the synthesis of novel metastable or non-equilibrium materials, or the design of highly configurable next-generation energetic materials. In this paper, the process of shock-compression in reactive powder mixtures and the associated role of various intrinsic and extrinsic characteristics of reactants in the triggering of ultra-fast "shock-induced" chemical reactions are discussed. Experimental techniques employing time-resolved diagnostics, and results, that identify the occurrence of shock-induced reactions are reviewed. Conceptual and numerical models used to describe the heterogeneous nature of such reactions through mesoscopic details of shock-compression are presented. Finally, a discussion of the application of recent results for the design of reactive material systems with controlled reaction initiation and energy release characteristics is provided.