Powdered Sugar Substitute
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Once I realized how easy it was to make sugar free powdered sugar at home, I never looked back. All you need is one keto sweetener and a blender or food processor.

Many grocery stores stock sugar free powdered sugar, and calling it expensive is an understatement. Growing up, my mom always made her own powdered sugar from scratch, so once I started baking low carb, I did the same using keto sweeteners.
The trick is that while almost any granulated sweetener can be blended down into a powder, they don’t all behave the same in my recipes. I’ve tested the six sweeteners I bake with most often and included my notes below so you can choose the one that works best for your needs.
Table of Contents
Recipe highlights
- 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.
- 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.
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. My preferred sweetener, as it has the best flavor and turns fluffy like regular powdered sugar. I also find it dissolves exactly like white sugar does.
- Erythritol. I don’t mind using erythritol or erythritol blends as a sugar alternative, but I find it’s better to dissolve it in simple syrups for baking rather than blend it into a fine powder.
- Monk fruit sweetener. Similar in rank to erythritol. It wasn’t as fluffy as I would have liked, but it tasted pleasant. Be careful, because monk fruit sweetener is usually much sweeter than allulose or erythritol.
- 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 left a quite 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 was the one I found had a funky, slightly metallic aftertaste.
How to make sugar free powdered 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
Keep the powdered sweetener in an airtight container in a cool, dry place away from direct sunlight. If stored properly, it will keep well for several months.
Frequently asked questions
Yes. A spice grinder, coffee grinder, or even a small food processor works well. It may take a little longer to achieve a fine, powdery consistency.
This usually happens if it has been exposed to moisture. Store it in an airtight container, and if needed, blitz it in the blender again to restore its powdery texture.

Recipes using sugar free powdered sugar
Now that you’ve made a batch, here are some of my favorite ways to use it:
- Keto frosting
- Keto cinnamon rolls
- Sugar free ice cream
- Keto meringue cookies
- Keto lemon bars
- Dust over 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.














How would the peach cobbler turn out if I replace 6 tablespoons of butter with 6 tablespoons of coconut oil?
It should be fine.
Arman, thanks so much for creating such amazing recipes.
Lol, I too was in disbelief at the number of readers who commented on the “puppy chow”
–one of my fave snacks since college,and I’m now 60+ just now using monk fruit and erythritol. Thanks for the wonderful site 🌹
The frosting recipe calls for 2 cups of keto confectioner’s sugar, but the recipe for making the keto confectioner’s sugar is only 1/2 cup of the keto stand-in. Will that be enough for the frosting? I’m getting ready to frost the cake..if it’s not enough, I’ll just do another batch!
You’ll need 2 full cups of the sweetener you choose 🙂
You can also powder allulose. Recent studies show allulose doesn’t affect your blood sugar or insulin levels, and additionally (this is the really amazing part!) lowers the carb effects of OTHER carbs in your dish or meal! It also has no aftertaste. It seems to be the “perfect” no carb sweetener!:
“In conducting studies as part of the GRAS process, researchers found that the non-nutritive sweetener allulose has no impact on blood glucose and actually suppresses glycemic response of other glycemic carbohydrates when tested with carbohydrates or within a meal.”
I have made the powdered sweetener for a while. I use my coffee grinder to make it. I don’t drink coffee, so my coffee grinder is used for making powdered sweetener, grinding flax and chia seed, making nut flours or butters.
Hi. I was just wondering if I could use Swerve sweetener instead of your recommendations! Thank you.
Hi there! You could, but swerve is erythritol based, and I wouldn’t pick it as my first all-around choice- allulose would be. It’s good for syrups, but not for baking.
Hi! How much powdered sugar does the 1/2 cup make?
Thank you!
Hi Allyson- a scant half cup 🙂
I’m so surprised by how many people thought “puppy chow” was actually dog food! 🤣 My sister use to make this tasty treat around the holidays. We’d munch on it while we watched old Christmas movies. Really glad there’s a keto recipe for this dessert!! Haven’t had it since I went keto.
Hi Arman
I just want to say that you are amazing, and so creative! I really enjoy your recipes. I’m not much of a cook ( my son is a general manager of a restaurant and he’s the best cook in the valley, so I really enjoy eating with him and his family.
Your recipes look delish, so easy, and healthy that I’m going to have to break down and make them! They are very clearly written too!
Thank you for sharing them with us!
Thank you so much, Pat- I appreciate it!
As I am unable to use artificial sweeteners can I use coconut sugar?
Coconut sugar is completely fine to use- it will be darker and not sugar free, but will still work.
I laughed at the 1st confused comment about the Puppy chow. But then more people commented on it… I was amazed. Yes. Puppy chow IS a name of a dog food, but it’s also (what I thought) was a well known snack recipe for humans. I enjoy all your recipes Arman!! Keep up the great work!! Now, I’ll have to try your puppy chow! lol. Woof!
You are a gem, Julie. xx
Jeff, Google puppy chow. Hundreds of posts on Pinterest. I’ve made it a ton of times. It’s a yummy dessert. I know what he was talking about. 🤷♀️
Hi Arman. It’s obviously a cultural and language problem. To most North Americans “Puppy Chow” is 1. A brand of dog food or 2. Slang for dog food! It is also a recipe as you say but there could still be confusion!
This was great, thanks Arman. Cost me a fraction of store-bought ones/
Can you use brown sugar?
No. Brown sugar is pure carbohydrate, 28 grams per ounce, over 100 grams in a 1/4 cup.