Studies have been carried out to design a suitable consumer size package from flexible packaging material to hold 100 grams of Chilli powder and 250 grams of whole chilli which are moisture and color sensitive. 1. Sorption characteristics of the chilli powder has revealed that moisture sorption is rapid above 55 per cent R.H., and the product is fairly hygroscopic. Further, an equilibrium moisture content of about 15 per cent at 70 per cent R.H., appears to be critical from the point of microbial spoilage of chilli powder. 2. Studies on the colour (Capsanthin) changes of chilli powder equilibriated to different moisture content, have revealed that colour changes during storage is greatly influenced by the moisture content and temperature decreases the capsanthin content of chilli during storage. 3. From the studies, it can be inferred that the sunlight exhibits pronounced effect in bleaching of colour and brings about maximum discolouration of the red pigment in chilli. 4. From the packaging and storage studies of chilli powder in different flexible films, it can be concluded that for long-term storage, the aluminium foil laminate is unique in offering maximum protection from various physico-chemical changes. For short-term storage and for fairly good moisture and colour protection, amber or black polyethylene, high-density polyethylene and Saran/Cello/Saran poly laminate pouches appear to be suitable alternatives.