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Chilli peppers were the most commonly used spice among the sample, and those who ate fresh chilli had a lower risk of death from cancer, coronary heart disease and diabetes. Health benefits of dry chili peppers Chili pepper contains an impressive list of plant derived chemical compounds that are known to have disease preventing and health promoting properties. Chilies contain health benefiting an alkaloid compound, capsaicin, which gives them strong spicy, pungent character. Early laboratory studies on experimental mammals suggest that capsaicin has anti-bacterial, anti-carcinogenic, analgesic and anti-diabetic properties. It also found to reduce LDL cholesterol levels in obese.