C. annuum is cultivated throughout most of the world for its pods, often called chili peppers, or chilies. The species includes most of the sweet peppers and many of the pungent, strong-flavoured types. Depending on the variety, the pods may be 0.5 inch to 1 foot (12.5 mm to 0.3 m) in length, with a long, round, or conical shape, and yellow, brown, purple, or red colour. A spongy central column bears the flat, kidney-shaped seeds.

Crops are planted in early spring and harvested in the summer and fall, when the pods are glossy and ripe. The pods are then dried and ground to produce paprika. When mild paprikas are made, the central core is first removed.

Paprika has some sugar content, varying with the variety, and is richer in vitamin C than the citrus fruits. Pungency is imparted by the nitrogen compound capsaicin, which is usually lower in C. annuum than in other plants of the same genus. A colouring agent, oleoresin of paprika, is extracted from the ground pods and used to impart bright red colour to meat and sausage products and to other processed foods.

Paprika is a popular seasoning in many cuisines. Its bright colour makes it an excellent garnish for nonsweet, light-coloured foods. It is frequently used in the cooking of Spain, Mexico, and the countries of the Balkan Peninsula. It is especially associated with Hungarian (Hungary) cuisine and is essential for such hot, spicy, Hungarian stew dishes as gulyás (called goulash in the United States), pörkölt, paprikás, and tokány.