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.














Love making my own powdered sugar substitute when needed. But I do have a question. Can you make CRISP keto cookies using Allulose rather than erythritol? I just find the cooling effect overpowering in a simple cookie recipe like vanilla wafers. I have not had good luck before using Allulose MonkFruit blend.
Hi Bob, pure allulose is currently my preferred sugar substitute for baking as I find it mirrors the properties of real sugar more closely than other alternatives. I would give that a try!
How much do you have in the end if you use 1/2 cup allulose? Does the blending of it produce more volume?
Hi Elise, it actually ends up being about the same in volume. You get finer particles but they also become more aerated 🙂
Christmas Day 2024
Hi Arman,
Disaster struck today when I went to prepare whipped cream to top Mom’s Pumpkin Chiffon Pie, a family Thanksgiving and Christmas tradition that started before I was born.
No powdered sugar and all the stores closed!
I had granulated sugar, but knew using it as a substitute would result in a gritty texture.
Tradition was at stake!
Beginning when all I could do was lick the beaters, I learned how to make this pie at Mom’s side in the kitchen.
A quick check on the internet led me to you and your easy process for making powdered sugar. So simple, it should have been intuitive.
Using the organic granulated sugar I keep on hand for the hummingbirds, I rendered it into perfectly powdered sugar with the blender. I’ll be making my own from now on.
Yay!
Thank you, and Merry Christmas!
B Douglas
Tucson, Arizona
My husband loves baked goods and I’m shifting to baking without white flours and sugars whenever possible. These muffins are delicious! Wow! Your website is a godsend!l. There are so many recipes I want to try. Thanks for yet another great recipe with these delish pumpkin muffins! Now I’m off to make myself some of your scones… yum.
Hi Andi, thanks so much for your kind words and I’m so happy we’ve been able to help you refine your baking to cater for these changes!
My husband is diabetic, but, of course, he loves sweets. I’m excited to find the recipes for sweetened condensed milk and powdered sugar. I have a question…. can I use Splenda in the powdered sugar?
If you can tolerate splenda well, then go for it 🙂
Just want to share that according to what I have read from nutritional scientists there are warnings against the use of Erythritol.
Monk Fruit, raw honey and pure maple syrup are healthiest except if your purchase Xylitol made from birch bark (NOT corn) because a minimum of 98% of ALL corn grown in the United States is dangerous. It contains GMOs and is sprayed. Splenda is also dangerous.
My Xylitol icing made with goat cheese to replace cream cheese and a dash of NOW Brand “Better Stevia” powder (no metalic after taste) works famously. All my best.
I’m so happy to see that making sugar free powdered sugar at home is possible! And easy! I usually avoid adding glazes or frosting because of the carbs. Thank you for this. I do feel compelled to say one word of warning… Xylitol sweetener is highly toxic to dogs! So if using this sugar substitute, make sure your furry friend doesn’t get a lick!
Hi Ann, thanks so much for touching on this. I’ve included a section in the post that warns against this too. Have to be very careful around our 4 legged friends for sure!
I am allergic to Erithidol. Monk fruit tastes too sweet. Have you made confectioners sugar with Stevia or Allulose?
Yes! Allulose is great 🙂
Since Erythritol is a synthetic sweetener, what else can you use. Stevia is not an option for me, as it is very bad tasting. Any other suggestions? Love your recipes and I am craving me some ice cream.
Allulose is best for baking 🙂
Allulose is 100% better than any other sweeteners. It does not cause any health risk like all the ones you mentioned. It’s great for baking. Try it .
Monk fruit is the safest one as i have read even my doctor suggested any thoughts on this
Hi Barb- there’s lots of information on sweeteners available- I’m going to let our website’s registered dietician chime in here- As a registered dietitian, I agree- monk fruit is safe, but I do also recommend allulose. And it’s reassuring your doctor supports that. Monk fruit doesn’t raise blood sugar, and allulose behaves like sugar without the metabolic impact, making both excellent options when used in moderation. – Felicia Newell, MScAHN, RD, CPT.
I used monkfruit sugar and didn’t powder it!! In the oven now with fingers crossed!! Smells great!
Has anyone tried the glaze with allulose?
Hi Lisa! Yes- it works so well with allulose and tastes just like sugar.
Question, erythritol is what typically has the cooling effect, correct? I buy swerve powdered sweetener but I hate that cooling effect and I was thinking, since monk fruit doesn’t have that (or at least not as noticeably), that would make a better powdered sweetener?
It can, but it all depends on how you use it. I recommend allulose- it makes the best tasting sweetener and also dissolves like sugar.
I use birch bark xylitol as it is all natural.
My husband has smoldering multimyloma from agent orange at Camp LeJuene and as A Marine tanker in Vietnam.
I don’t know about the other low carb sweeteners.
We have been on keto way of life since August.
Any help would be greatly appreciated.
Thank you
Hi Nancy, I’m so sorry to hear this. It would be best to check with your husband’s doctor as to what sweeteners are best for his condition but from a baking perspective I’ve found allulose to be the best substitute for sugar, generally speaking.
Have you tried this with Stevia? I made the swap to Stevia, from the Stevia plant, some years ago. I use it in my tea, in my coffee, and even in some cakes. I never thought to try to turn it into confectioner’s sugar. Thanks for the idea.
Joe
Hi Joseph- I did test it with stevia, and it’s not my top option. It just leaves a strange taste and loses sweetness as it bakes.
Hi Aman!
A word of advice: you should probably rename your Puppy Chow recipe because the world is full of
stupid people who will actually feed this to their dogs!
Please do not print my comment for others to see; my only reason for sending this comment is to save
you the angst of angry dog lovers.
BTW: Your recipes look wonderful and easy to follow. I’m thinking of switching my diet to keto as I have
a seizure disorder and keto is supposed to be an excellent natural way of controlling seizures.
Hi Jane! Oh gosh, I’m sorry- I hope you’ve managed to find a way to make sure they don’t happen. If there’s any recipes I can help with, please don’t hesitate to reach out.