Powdered Sugar Substitute | How to Make Powdered Sugar

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

What would you use this powdered sugar substitute for?