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.

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.

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.

More Frugal Homemade Pantry Basics
- Aluminum and Corn-Free Baking Powder
- Homemade Taco Seasoning
- Sugar Substitute – like Truvia
- Homemade Rice Milk
- Homemade Pumpkin Pie Spice

Powdered Sugar Substitute | How to Make Powdered Sugar
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?


thank you so much for the details, this article appeals to my ‘common sense’. i have a couple of cakes to bake 2moro and was trying to work out what i could use to make icing sugar. alas i dont have a vitamix yet… 1day, most definitely :). since arrowroot is used, this means i could use this to make a custard (i can’t think of the right words, tired lol) for my meringue cake hmmm… interesting. again much appreciations.
You are so welcome!
I doing Keto
Does the addition of theCornstarch add carbs?
It would add a small amount. You can eliminate it and it will just mean that the sweetener will clump more easily.
If I don’t have powdered sugar on hand, what makes you think I’d have Xylitol? Besides, doesn’t that product cause gas & bloating?
Hello Marlene,
Thanks for reading. The idea behind the post was to give people who have any type of granulated sweetener an easy option to make it into a powdered version without them needing to spend extra money or go to the store. So most people these days (sadly) would have regular sugar. But if you are a low carb family or individual, then you would likely have xylitol or erythritol on hand.
As for the gas and bloating that depends on the person. I tend to vary my sweeteners and mix them together for better taste. There is more on that in this post: https://wholenewmom.com/kitchen-tips/stevia-what-it-is-and-how-to-use-it/
Hope that helps explain.
Hey, thanks for the article. I had no idea there was a way to make powdered sugar on my own. I love sweets, but sugar doesn’t love me! So finding an alternative for regular powdered sugar is wonderful. When I get ready to bake again, I will definitely take another look at this article for some tips.
So glad to hear it and you are welcome!
So you r solution is to use xylitol to make powdered sugar. Nonsense You say you were on an income of $14k and had to search for savings. This is a joke . Xylitol sells on amazon for $12.99 per pound. Nutty . Maybe you should do housecleaning instead. How ridiculous and poorly written article.
Hi Ginb.
Thanks for reading.
It’s actually not nonsense. I was not eating low carb when I figured out how to do this. So for me, it was a cheap way to make powdered sugar to save money. Additionally, I buy my xylitol in bulk which helps me save more money.
The post is about DIY powdered sugar with the alternative of making a low carb option.
I think you made an error with your pricing of xylitol–this is a great brand and it’s $7.48 a pound: (affiliate link) https://amzn.to/2TUeGRX. Confectioner’s xylitol is harder to find, but this confectioner’s erythritol (affiliate link): https://amzn.to/2TSOHuc is much more costly–more than $12 a pound.
Hope that helps you understand.
If you care to comment again, and you think I made an error, I would appreciate you trying to be a little more kind about it. I already got unfairly bludgeoned by another commenter and frankly it’s not pleasant. I’m human too and even if I had made a mistake there are better ways to communicate. Thank you.
About your housecleaning comment, by the way, I will say that years ago, when we were in that financial situation, we met w/ a financial planner who, when we told him about how we stayed out of debt, turned and said to my husband, “Do you know what a treasure you’ve got?!” He never recommended that I take up housekeeping as a way to bring in more income. My husband has 2 masters and PhD and we both came from families with very modest incomes, and we never went in debt.
In fact, your comment has made me think that perhaps I should go forward with something I was considering doing, which is expanding the budget-friendly offerings of the blog. Thank you for the inspiration :).
Thanks Wholenewmom.com,
I needed this…. it’s abig help for the diabetics I bake for. Are there added sugar substatutes you use in baking? Someone recommended finding zero indexedsweeteners.
I am also trying trying to learn how to adjust the gluten free baking i do to get products to rise like cakes should! Any suggestions there. I’ve been looking at Koda Farms products but not sureif glutenous riceflour will create issues for gluten free folks systems or if itsricerelated if its different?
Where do you buyyour substatutes? It’s been hard finding these other substatute ingredients andin bulk? This same someone mentioned a nave or some similar names sweetener in walmarts shelves have you heard of a four letter named product similar to that?
LaRoy
You are so welcome! I have used stevia, xylitol and erythritol. Monk fruit is another option and so is glycerine. Some of those are not zero glycemic. I have never heard of Koda. Rice is GF so that’s not a problem. I buy things online and sometimes from other places. I almost never shop at Walmart. Not sure what you mean by nave – any more info about it?
Hi there,
For the monk fruit what were the quantities you used? Also how much would you recommend if you were to try to use this as a substitute for 2 cups of sugar?
Many thanks,
Charlotte
Hi there. I have never used monk fruit for this recipe. Please let me know what you are asking re: substituting for 2 cups of sugar. Thanks!
Hi,
I I hope you can help me. I use vegan eggs, either with flax or chia, I am not havinng too much when I don’t need to use sugar substitute , I use stevia extract, this is where I’m having an issue, I know bulk needs to be added, example, if recipe calls for 1 cup sugar amount of stevia extract needed 1 tsps. , for every cup of sugar replaced 1/3 cup of yogurt, applesauce or other fruit. I don’t know what I need to to, the cake is very dense, does not rise much, and does not taste terrific. I am a vegan newbie, just several months, (been a vegetarian for 42 years, yes, I ‘m old?). Do you know what I need to do? I apologize for babbling, but I’m a babbler. If you have an answer to my dilemma, I’d be so grateful.
Anita
Hi there. I think you would prefer this for your substitute. It has leavening in it so it works better than flax and chia. https://wholenewmom.com/recipes/energ-egg-substitute-egg-replacer-without-eggs/ I think that should really help. Hope so!
Hi,
I wanted to thank you for this recipe. I made powdered sugar with organic sugar, and forgot the cornstarch – I think I’ll use organic arrowroot instead of cornstarch, I use that for thickening stuff too.
The next time I’ll try using organic xylitol or erythritol since it doesn’t spike blood sugar, since my husband has diabetes.
Thanks Again,
Rose Brennan
You are so welcome! Erythritol is better for blood sugar issues. Take care!
You could also use a “new” sweetener called Bocha Sweet, is has no effect on blood sugar, use it 1:1 for regular sugar, and does NOT have the bitter aftertaste like the sugar alcohols (erythritol, xylitol) or the other subs for sugar (monkfruit, stevia) It is a Godsend for me, as I, too have T2D.
I’m talking to the company now….hoping to have a way to save you some money on it :).
Thank you for the great tip on making confectioners sugar from other sweeteners. I wanted to let you know about a new sweetener I just discovered called BochaSweet. It tastes just like cane sugar without any of the negative side effects of other sweeteners. I put a bag of BochaSweet in my Vitamix and in a few seconds on medium high speed I had confectioners sugar. I love it!!! You might want to give it a try.
Here are some of the pluses I found on BochaSweet’s website:
Bakes, cooks, and tastes just like sugar
Dissolves easily
No bitter taste
Diabetes friendly
Zero net carb
No weight gain
Will not cause insulin stimulation
Ensures keto diet success
Provides pure energy for the cells
Non GMO
Helps support healthy blood sugar levels
I saw that – pricey but interesting. Thanks!
I will using it for a velvet frosting, my receipt calls for 1 (8 oz. pkg.) of cream cheese, 1/2 cup of softened butter, 1 tsp. Vanilla and 3 1/2 cups of powdered sugar. And I only have 1 1/2 cups of powdered sugar and I am baking a Carrot Cake. It’s the best frosting I’ve ever made. Thanks for the recipe for making the powdered sugar, I’m going to make it today. Thank You, Celina Parins
Hope it works well for you. LOVE carrot cake!