Coconut Sugar is a natural sugar made from coconut palm sap, which is the sugary circulating fluid of the coconut plant. It is often confused with palm sugar, which is similar but made from a different type of palm tree. Coconut Sugar, unlike white sugar, contains nutrients such as fiber, protein, potassium, calcium and iron. It is a good alternative to sweeten foods because it does not raise the glycemic index like white sugar does.