Powdered Sugar Substitute | How to Make Powdered Sugar

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Today I'm sharing with you something that is a super simple recipe for Homemade Powdered Sugar, including a low-carb option).

This Powdered Sugar Substitute will work great in anything you would typically use powdered sugar in. Since it's powdered, it will make any dish where you would like to have a smoother texture that much easier to make smooth.

powdered sugar in a sifter and in a bowl.

I love making homemade versions of pantry staples and processed foods to save money on whole foods and to have healthier (and cheaper) versions of packaged foods.

Recipes like:

homemade salad dressing
easy homemade ketchup
homemade chocolate chips
taco seasoning
homemade JELLO®, and
easiest homemade coconut milk are staple in our home.

This powdered sugar substitute is yet another big help in this department. It costs less than store-bought powdered sugar, plus you can use healthier and even low-carb sweeteners to make this Substitute for Powdered Sugar, so it will easily meet your dietary needs.

You've been there, before, haven't you?  You're making something in the kitchen and you ….oops–run out of an ingredient that you need.

Of course, you could call your neighbor to see if they have what you need, but if they're not home, having some recipes for homemade pantry staples can really help.

homemade powdered sugar in a sifter and green bowl

Why I Learned How to Make Powdered Sugar

Years ago, I tried to find out how to make powdered sugar when we were on an incredibly strict budget. We were living off of only $14,000 a year. Yes, we were living with my inlaws, so our expenses were low, but it was still tight. Every penny counted. I mean, when you are wondering if you should “splurge” on powdered sugar, you know money is tight.

So I did some digging on the internet to see if it was possible, and yes–it was!

You are not going to believe how simple this is and you'll wonder why you weren't doing this for years.

Just gather a blender or food processor, your sweetener, and then one other ingredient and you're done.

Low-Carb Options

Xylitol and erythritol are other options that will not affect your blood sugar and they are also helpful as they do not feed candida.

If all you have is regular white sugar or cane juice crystals, then that will work too, but those options are typically considered to be less healthy than the alternatives listed.

The Valuable Vitamix

Personally, I love making this substitute for powdered sugar, and so many other things, in the Vitamix. There are other great high-powered blenders out there, but the Vitamix is my fave.

You can make this Powdered Sugar Substitute in a regular blender too, but it's even faster in a Vitamix.

If you need more convincing about how great a Vitamix is, see these posts:

Easiest Almond Milk Ever
Easiest Coconut Milk
Homemade Coconut Butter

How to Use this Substitute for Powdered Sugar

  • frostings
  • as a dusting on desserts
  • in desserts that might be “gritty” when using granulated sweeteners, like these Homemade Chocolate Chips.
  • in drinks like lemonade so the sweetener will dissolve more easily.
  • meringues

How To Save Money with this Substitute for Powdered Sugar

  • homemade regular powdered sugar is typically less expensive than store-bought powdered sugar so you'll save money that way
  • no running out to the store at the last minute and wasting time and gas money (not to mention wear and tear on your car)
  • cheaper low-carb sweeteners. The specialty powdered sweeteners are not only hard to find, but they are prohibitively expensive. For example, this powdered organic erythritol is more than $12 a pound! Make this substitute for powdered sugar instead and save tons of money!

Recipe Notes and Substitutions

  • Arrowroot Alternative: You can substitute cornstarch or tapioca starch for the arrowroot, but I recommend a non-GMO option if choosing the cornstarch. If you are on a keto diet, you can omit the starch.
  • Starch Ingredient: The starch portion of the recipe helps the powdered sugar not to cake. It's not necessary but it's preferable.

Sweeteners Options

  • You can use organic erythritol instead of xylitol. I know that xylitol and erythritol are not typically considered “whole foods,” however I can't eat sucanat or coconut sugar, or else I would gladly use either of these for an AIP option. That's why I use xylitol and erythritol quite a bit in my recipes. However, xylitol and erythritol are naturally occurring so many consider them to not be artificial sweeteners, like aspartame and saccharin.
  • Xylitol has the same sweetening power as sugar but erythritol is only about 70% as sweet as xylitol, so adjust your recipes accordingly.
  • If you choose to powder sucanat, the resulting product will be light brown. But it will still work in your recipes and will taste great. See this Unrefined Powdered Sugar to see how it looks.
  • Cane juice crystals are almost as refined as white sugar so they aren't as natural of an option as Sucanat.
Powdered Sugar in a Bowl - How to Make Powdered SugarPin

More Frugal Homemade Pantry Basics

powdered sugar in a sifter and in a bowl.

Powdered Sugar Substitute | How to Make Powdered Sugar

You can still make things like buttercream frosting without powdered cane sugar, just make this homemade unrefined powdered sugar!
4.82 from 11 votes
Print Pin Rate
Prep Time: 3 minutes
Total Time: 3 minutes

Ingredients

  • 1 cup low-carb sweetener
  • 1 tablespoon cornstarch (optional – see alternatives above)

Instructions

  • Place the sweetener and either cornstarch or arrowroot into your blender or food processor. (I highly recommend the Vitamix!).
  • Blend on high continuously until the mixture is of uniform powdered consistency. In a high-powered blender like the Vitamix this will take only about 30 seconds.
  • Keep the lid on the blender until the powder settles (or you might have powdered-sugar coated cabinets, depending on how much of a powdered-sugar cloud gets kicked up by your blender!)
  • Store in a cool, dry place.

Notes

  • Arrowroot: You can substitute organic arrowroot or tapioca starch for cornstarch. If you are on a keto diet or the Trim Healthy Mama eating plan, you can omit.
  • Starch Ingredient Information: The cornstarch / other starch portion of the recipe helps the powdered sugar not to cake. It's not necessary but preferable.

Nutritional information is provided as a courtesy and is an estimate only. It may vary depending on ingredient brands, substitutions, and preparation methods. Optional ingredients are not included. Net carbs are typically calculated by subtracting fiber and sugar alcohols (such as erythritol) from total carbohydrates. This information should not be relied upon for medical or nutritional purposes.

What would you use this powdered sugar substitute for?

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298 Comments

  1. Thanks!
    I am always looking for alternative ways of doing things!
    FYI Just letting you know of a typo:

    – homemade powdered sugar is typically more expensive than regular sugar so you’ll save money that way

    I think you meant to type, less expensive ?

    1. You are so welcome.

      Oh my…you win the Observant Reader of the Year Award….how was this post up that long without me, my son (who works on my site with me) or anyone else noticing that? This was one of my earliest posts! Thanks!!!

  2. I cant have any of the sugars you mentioned. I can have stevia tho. Have you tried maple Sugar? Its made from pure maple syrup & is a great substitute for brown sugar. Its granulated like cane sugar, and tastes wonderful! Its a bit expensive tho. It can be purchased in bulk online. Natural Grocers only carries it in small bags that are about a half to 3/4 pound for nearly $8.50/bag.

    1. I haven’t tried it but I can’t have a lot of high glycemic foods. I do have a maple sugar leaf in the pantry though :).

  3. I am using this recipe today for my son’s birthday cake marshmallow fondant. I’d like to add that consuming too much xylitol may have a diarrhea affect. I’ve never experienced it, but it’s worth noting.

  4. Hi, I just found your website and am really enjoying it. However, I am confused. You wrote that Xylitol and Erythritol won’t affect blood sugar but I was recently told by my doctor that Xylitol does affect my blood sugar and that I should only use erythritol or straight stevia. Could you please clear up any confusion? Thanks so much.

    1. Hello Pam. My understanding is that xylitol has a negligible effect on blood sugar – can your doctor point to something that shows otherwise? Thanks.

      1. Um hello, if the Dr. Says it affects it, who are you to question them? Have you gone to medical school & have training for nutrition? My father is a diabetic & things that he was told are ok when he first got diabetes 30+ years ago, he is now being told is not ok to eat!

        1. Dearest Sarah,
          What you will learn if you live long enough is that doctors – all of them only have between 2 to 8 hours of instruction regarding nutrition. This is highly unfortunate considering that most if not all health issues stem from what we are putting in our bodies.
          As you stated yourself regarding your dad, the doctors are the ones giving out bogus information to their patients because they themselves do not know any better.

          1. Just to try and help yes xylitol does effect your sugar level but yes it is low. Xylitol has a GI of 12, erithitol GI 1 and stevia GI 0. To put in to perspective most normal sugar had a GI of about 100. 12 is a small amount but can still effect or hurt some one with a health condition so best to stick to stevia and then erthritol.

  5. Br careful using xylitol around pets. I’ve read it’s toxic to dogs…not sure about cats, but better to err on the side of caution.

      1. Yes, it can kill dogs. I do have friends who eat low carb who use it with success. They are very careful. One of them in a prominent sugar free blogger. In case you didn’t know, raisins and grapes can also kill dogs and they react to chocolate as well. We have a friend who had to take her dog to the vet after he ate a bunch of raisins.

    1. Stevia is already very fine if you mean the extract powder. If you mean a granulated sweetener w/ stevia in it then yes, that can work.

      1. Thank you! I have the THM super sweet blend and was wondering if I could powder it, I am going to try. I had no idea that you could do this so I am excited to try!

  6. What sugar substitute can I use that isn’t derived from sugar cane??

    My daughter is allergic to CANE sugar and it’s derivatives.

  7. When making this sweetener if you add corn starch as the base won’t that make it very high in carbs! Regular corn starch has 117 carbohydrates per cup. And I think starch will definitely effect the blood sugar. Am I wrong about this?

    1. How fun! :). I’m redoing a lot for Pinterest so maybe you’ll find more soon. I have some UUUUUUUGGGGGGly old photos that need redoing. UGLY! Hope you are well!