Coconut sugar is an all-natural sweetener derived from the sap of coconut palm flowers. It's often used as a substitute for processed, refined, and artificial sweeteners. The main benefit of this ingredient, and what makes it stand out from other sugars, is the way it responds to blood sugar. A dose of coconut sugar won't cause a spike as high as typical sugar substitutes. However, coconut sugar is not a true health food. It's still a sugar even if it has more nutrients than its substitutes.