Pepper, Capsicum annuum L., is a very well-known vegetable specie which belongs to the family Solanaceae and includes a large number of cultivars and varieties, which differ in their morphological and physiological characteristics. The basic division of red spice pepper is on sweet and hot. Its use is widespread and therefore it can be grown for its edible fresh fruit and as a spice which is made by drying and grinding of fruits. This spice has a major role and application in a traditional cuisine. Red spice pepper is rich in active compounds which positively effects on product quality and human health. Important biological active compounds such as phenols and flavonoids are spread in different plant organs but most of their quantity is being synthesized in pepper fruit which is used as a spice. They have significant antioxidative properties and application in medicine. Most known flavonoids are gallic acid, caffeic acid, hydroquinone, catechol, cinnamic acid, eugenol etc. The aim of this investigation was to determine the influence of environmental and genetic factors such as production year, location and cultivar on concentration of phenols and flavonoids in grounded red spice pepper. During investigation, it was determined that all investigated factors significantly effects on concentration of these active compounds. However, during the two years of investigation concentration of phenols and flavonoids was found to have different concentration pattern amongst location depending on production year. Also, significantly higher concentration of phenols was obtained during 2013 which had lower temperatures during stage of intensive fruit set and harvesting. At the end, results of laboratory and statistical analysis points out that concentration of phenols and flavonoids is under significant influence of environmental factors as part of plant response to environmental stress.