AI Turns Farm Waste into Sweeteners: 2nd Nature Targets Post-Stevia Market

A US-based food technology startup is preparing to introduce a new class of natural sweeteners and flavor enhancers developed from agricultural side streams, as part of a strategy that combines artificial intelligence, ingredient science, and industrial-scale food processing. 2nd Nature, founded in 2023 and headquartered in Cincinnati, announced that it will launch its first products for commercial sampling during the first quarter of 2026, aiming to offer food manufacturers non-caloric sweeteners and sodium-reduction solutions sourced from crop byproducts. The development is relevant because it addresses two major industry challenges at once: the limited availability of natural sweeteners beyond stevia and monk fruit, and the underutilization of agricultural waste streams, according to information published by AgFunderNews.

The company focuses on identifying high-value molecules hidden within byproducts from widely cultivated crops such as wheat, corn, soy, rice, and peanuts. These materials are already processed at massive scale by the global food system and are often treated as low-value waste, generating disposal costs for processors. By applying artificial intelligence to analyze these side streams, 2nd Nature seeks to convert them into functional ingredients with commercial applications across food and beverage categories.

At the center of the company’s strategy is a proprietary digital platform known as the AgWaste Portal, which uses machine-learning models to predict the functional properties of molecules found in agricultural byproducts. According to the company, the system can search across small molecules, peptides, proteins, enzymes, and fibers, ranking them based on taste, performance, and manufacturability. This approach, the startup argues, allows for faster and more cost-effective discovery of ingredients that would otherwise remain overlooked.

“Our AgWaste Portal identified these compounds in the byproducts of crops that food manufacturers already process in massive quantities and currently pay to dispose of,” said Effendi Leonard, cofounder and chief executive officer of 2nd Nature, in statements reported by AgFunderNews. “What’s exciting is that these ingredients are hidden in plain sight and we can produce them at scale and at low cost.”

Leonard holds a PhD and previously worked at companies operating at the intersection of biotechnology and food systems, including Calysta, Ginkgo Bioworks, Provivi, and Ayana Bio. He cofounded 2nd Nature alongside Reed Doyle and David Groshoff, combining expertise in biology, data science, and food processing.

Beyond stevia and monk fruit

In the global sweetener market, natural high-intensity options remain limited. Stevia and monk fruit dominate the segment, while sweet proteins such as brazzein are only beginning to reach commercial scale. Each of these alternatives presents formulation challenges related to taste profile, aftertaste, stability, or cost. According to Leonard, this has created sustained demand among food manufacturers for new sweetening solutions that meet clean-label expectations without compromising sensory performance.

2nd Nature claims to have identified both proteins and small molecules that are between 50 and 100 times sweeter than sugar, with a clean taste profile and minimal impact on food formulations. While full validation across product categories is still underway, the company plans to make samples available to qualified manufacturers in order to accelerate testing in real-world applications.

“It depends on the formulation, but we’ve identified ingredients that are clean tasting and, as far as we have tested them, don’t break formulations,” Leonard said, according to AgFunderNews. He added that sourcing these compounds from abundant agricultural side streams could enable competitive pricing, particularly when compared to sweeteners derived from exotic crops or precision fermentation.

In addition to sweeteners, the company is developing umami and kokumi flavor enhancers designed to help food manufacturers reduce sodium levels without relying on monosodium glutamate (MSG). These ingredients enhance salty, savory, and even sweet perceptions, offering potential applications in processed foods, snacks, and ready meals.

A flexible business model

Rather than operating as a traditional ingredient manufacturer, 2nd Nature positions itself as a discovery and process-development partner. Its business model varies by project but typically involves collaboration with food processors, contract development and manufacturing organizations (CDMOs), and ingredient or flavor suppliers.

The collaboration process follows three stages. The first involves AI-driven discovery, in which customers define the desired functional outcome and pay an onboarding fee. The second stage includes physical isolation and validation of promising compounds, with partners covering the cost of testing. In the final phase, once commercialization is agreed upon, partners receive an exclusive opportunity to bring the ingredient to market alongside 2nd Nature, which contributes its process optimization technology.

While the company owns its extraction and processing know-how, it relies on off-the-shelf equipment and focuses on optimizing parameters such as yield and purity through small-scale testing. Once a process is finalized, it can be transferred to a third-party CDMO for industrial production. 2nd Nature also supports partners in preparing GRAS (Generally Recognized as Safe) affirmations for regulatory approval in the United States.

AI as a differentiator

The use of artificial intelligence for ingredient discovery is not new, but 2nd Nature’s approach differs from other players in the space. Companies such as Brightseed, for example, often start with a human health target and then search for plant compounds that interact with specific biological pathways. In contrast, 2nd Nature begins with functionality and sensory performance, then searches agricultural waste streams for compounds that deliver those attributes.

“To our knowledge, we are the first and only company using AI to look into side streams for ingredient discovery,” Leonard said in comments cited by AgFunderNews. The company has filed a patent covering a broad range of applications, including food and beverage, wellness, personal care, and pharmaceuticals, reflecting the platform’s flexibility.

As food companies face mounting pressure to reduce sugar, lower sodium, and improve sustainability, solutions that combine waste valorization, cost efficiency, and scalable performance are gaining strategic relevance. If 2nd Nature’s technology performs as expected in commercial trials, it could open a new chapter in the search for natural sweeteners beyond stevia, while redefining how the industry views agricultural byproducts.