Difference between desiccated and shredded coconut Shredded coconut is grated bits of coconut, usually in long thin strips/strands. They are then dried out, but still, retain more moisture than desiccated coconut. Desiccated coconut is finely ground coconut, rather than bigger strips. This is also usually drier than shredded coconut. Can I substitute desiccated coconut for shredded coconut? Most desiccated coconut is unsweetened, so look for unsweetened shredded coconut in the baking aisle. The moisture content of shredded coconut isn't likely enough to throw off a recipe that calls for desiccated, so you can simply swap shredded in.