Powdered Sugar Substitute
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Make my sugar free powdered sugar recipe once, and you’ll NEVER buy it again! All you need is one ingredient and a food processor or blender. Zero calories and zero net carbs.
Ever since making my own powdered sugar substitute, I’ve been using it in keto meringue cookies, healthy puppy chow, and keto lemon bars!

You probably noticed more grocery stores are stocking sugar-free baking staples. There are plenty of sugar-free syrups and chocolate chips, but I’ve yet to find a suitable sugar-free powdered sugar.
Old me would order it online, but now that I know how easy it is to make at home, it’s a no-brainer to make my own powdered sugar substitute!
Table of Contents
Why I love this recipe
- Easy to make. All you need is one ingredient, a blender, and less than a minute.
- It tastes like the real thing. So long as you use one of my preferred sweeteners, you won’t have to worry about a fake sugary aftertaste.
- Instantly make any recipe sugar-free. Once you have a pantry full of sugarless staples, you can quickly turn all your favorite baked goods sugar-free.
- Cheaper than store-bought. You’ll pay upwards of $5 more per bag for powdered sweetener versus granulated, and the only difference is the consistency.
Ingredients needed
- Granulated sweetener of choice. Of all the sweeteners I tried, allulose was my favorite for making powdered sugar. Most brands use it because it has a pleasant taste and texture. Monk fruit sweetener is a close second.
What sweetener is best?
Not all sugar-free sweeteners are created equal, and some are better for turning into powder. Here’s a quick breakdown:
- Allulose. I typically like using allulose as a sugar alternative, but I find it’s better to dissolve it in simple syrups than blend it into a fine powder.
- Erythriol. My preferred sweetener as it has the best flavor and turns fluffy like regular powdered sugar.
- Monk fruit sweetener. Similar to erythritol. It wasn’t as fluffy as I would have liked, but it tasted pleasant.
- Xylitol. I generally don’t use xylitol in my recipes, but I tried this as I’d seen a powdered sugar brand use it. It blended well but had quite a bitter aftertaste. It’s also VERY dangerous to dogs, so don’t share any treats if you use xylitol.
- Stevia. The only one I wasn’t a fan of, as I found it had a funky, slightly metallic aftertaste.
How to make sugar free confectioners’ sugar
I’ve included step-by-step photos below to make this recipe easy to follow at home. For the full printable recipe instructions and ingredient quantities, scroll to the recipe card at the bottom of this post.
Step 1- Blend. Blend the sweetener in a blender or food processor until fine, white, and fluffy.
Step 2- Store. Keep it in a sealed jar or container.

Storage instructions
To store: Powdered sweeteners should be kept in an airtight container away from direct sunlight. It’ll stay fresh for up to two weeks.
Frequently asked questions
Splenda can be used in place of powdered sugar, but it needs to be blended to a powder-like consistency.
Technically, they are different, as confectioners’ sugar typically has cornstarch added to prevent caking, whereas powdered sugar is made only with sugar.

Recipes using sugar free powdered sugar
- Keto frosting
- Cinnamon roll for one
- Sugar free ice cream
- Dusted on keto pancakes, keto french toast, or keto cupcakes

Powdered Sugar Substitute
Ingredients
- 1/2 cup granulated sweetener of choice * See notes
Instructions
- In a high speed blender or food processor, blend your sweetener until fluffy.
- Transfer your powdered sugar to a sealable container.














I tried stevia and the crystals never broke down. I tried using it in frosting and it was grainy and like eating sand. Had to scrap the batch..
Hi Deb- I’m not surprised, seeing as in the post, I mention how stevia is the only one that I don’t recommend because it didn’t turn out well at all.