Lemongrass value chain offers industrial development options in Tanzania.
AI applications speeding up lemongrass market growth.
Industrial development incentives in Tanzania can expand lemongrass market reach.

Tanzania lemongrass production is growing thanks to favourable global consumer behavior change towards organic products and the related global growth of the wellness market.

While the Asia-Pacific region is currently the world’s leader in lemongrass production with India, Sri Lanka, and Vietnam providing over 70% of worldwide output, Africa is catching up.

In East Africa, Tanzania’s lemongrass production is gaining ground to meet the spiked global demand.

Lemongrass, locally known as Mchaichai is a growing favorite beverage across households in Tanzania and can even be spotted in 5-star tourists’ establishments.

An alternative to traditional tea (Chai), this is the first stage of the lemongrass consumer value chain; a healthy organic beverage served hot or cold, it has extensive calming and soothing properties that relieve anxiety and headaches.

However, through processing and value addition, lemongrass has many uses across multiple sectors including the food and beverage sector, medicine and cosmetics, and wellness industries.

Value addition transforms lemongrass from a perishable raw herb into a high profit margin industrial product; especially due to its high concentration of citral.

Citral is a chemical compound that has numerous bioactive properties. It is used as antibacterial and antifungal. It is also an anti-inflammatory and antioxidant vital for cardiovascular and liver health.

Also, lemongrass can be used to extract oil that is used to manufacture natural soaps, lotions, shampoos, and aromatic balms to mention but a few products.

Lemongrass extracts are also used to produce natural insect repellents and eco-friendly cleaning agents.

“By moving past primary production, farmers and processors capture significantly higher profits in the global cosmetics, aromatic and wellness markets,”

Value addition also extends shelf life from days to years, which solves the post-harvest loss problem suffered by most agriculture products.

The global lemongrass oil market was valued at $61.26 million in 2024, one year later, it grew to $65.61 million, according to

Citing a CAGR growth rate of 7.1%, analysts project it will clock $113.58 million by 2033. “This growth comes in the wake of increasing demand for plant-based wellness and lifestyle ingredients,” details

The lemongrass value addition chain is in line with Tanzania’s industrialisation objectives. To tap into the lemongrass growing global market, industries must be developed ranging from mechanisation of farming inputs to value addition plants.

Further still, lemongrass farming and value addition requires and supports digitization and application of AI systems all of which will help the country achieve it’s modern industrialization ambitions.

Hense, developing the lemongrass value chain alone, will go a long way in catalyzing industrial and digital development in Tanzania.

Also Read: How Tanzania is franchising its way to a new economy

Artificial Intelligence rewiring the lemongrass production industry

According to a 2026 research analysis of the global lemongrass value chain market, artificial intelligence is playing a major role in the development of lemongrass extracts market.

Conducted and published by the research agency Skyquest, the analysis cites the use of machine learning technology applied to simplify harvest planning, steam distillation, and to maximize yield consistency.

“Implementing AI-monitoring technology led to increased citral levels along with quality consistency, allowing the suppliers to provide higher-quality for foreign buyers,” reads the report.

Along with heightened consumer awareness of the health benefits of lemongrass, there is growing demand for transparency in the lemongrass production and distribution value chain, here we find another application for AI in the lemongrass value chain.

This demand for traceability is been met by use artificial intelligence technologies which ease followup across the supply chain.

For example, the report says, North American and European companies now mandate automated QR-coded electronic tracing and batch test conformity which affords greater levels of transparency and product safety.

According to the research report, the Germany based company Symrise AG, doubled it’s production capacity at its lemongrass oil facility in Madagascar thanks to application of AI guided systems.

Likewise, to address customer requirements for authenticity and ethical sourcing, Ultra International (U.S.) applies a blockchain traceability platform for its shipment of lemongrass oil allowing customers to verify the origin and quality of each batch in real time.

According to the research report, the US, the largest and fastest growing lemongrass oil market, employs AI technology to deepen its retail level penetration and meet consumer traceability requirements.

“North American consumers are insisting on more natural and sustainably sourced essential oils, which are forcing retailers and producers to invest in origin authenticity using clean-label and QR-based solutions,” the report details.

It follows that, for countries like Tanzania that are looking to tap into the lemongrass global value chain, application of AI systems to meet market requirements is a must.

“The American consumer is extremely sensitive to natural ingredient-based personal care products and aromatherapy,” research shows.

To enter such markets, producers in Tanzania must evolve and apply digital technologies like AI technology and batch-level QR code traceability that will serve to address the quality, and transparency requirements.

essential oil demand. Distribution strategies prioritize multi-channel engagement, so the U.S. is high priority for product development and adoption by consumers.

Thanks to QR-coded purity stamps, the research shows, Direct-to-Consumer (D2C) is the fastest growing channel due to customized subscription sets, traceable origins, and eco-friendly packaging.

Producers in Tanzania can tap into the growing e-commerce platforms powered by AI and chatbots.

“Consumers crave purity, testing, and convenience and thus D2C is most suited for the health conscious clientele…producers that apply digital convenience models will capture the current lemongrass explosive marketplace growth,” the report advices.

Luckily for investors, these consumer requirements are inline with Tanzania’s industrialisation ambitions. The country (and most of the EAC) has launched various incentives to drive growth of industry technologies and digital applications are included.

There is room for entrepreneurship creativity in the lemongrass value chain that investors in Tanzania can utilize particularly in creating AI systems for lemongrass source traceability, applying QR codes to products and innovative packaging.

With favorable climate and fertile land, the government of Tanzania can catalyze development of the industry through extension of incentives to help attract investors to establish production lines for lemongrass extracts and product development beyond use of lemongrass for beverage.