Paprika is made from dried and ground chile peppers of the capsicum annuum family, which originated in Mexico. Christopher Columbus originally brought the chile to Europe.
Around the year 1560, the peppers reached the Balkans where they were called peperke or paparka, and soon migrated to Hungary, which is now known for its paprika. Hungary is the most well-known makes of sweet paprika.
Paprika did not pick up popularity in the Western kitchens till the mid-1900s. Spain, South America, India, California, and regions in the Mediterranean have become major produces of paprika.
Paprika over the years has been mostly used as a coloring agent, but is also know for it's flavor when used in large quantities, specially with meats.
Paprika has a couple health benefits, since it has a very high amount of vitamin C, specially the ones that are dried naturally in the sun. Paprika can help normalize blood pressure and improve circulation.
Paprika created in the United States is a sweet, dried, red powder made from any type of Capsicum annuum pepper that is non-pungent.
Sweet Hungarian paprika is considered the best and is very pungent and is a slightly different variety of peppers that make it unique.
Other parts of the world make paprika that contains a varying degree of heat and color.