I bought a lot of coconut sugar (and have since given it to my MIL). I baked cupcakes with it and the entire batch of cupcakes fell (there was a crater-like indention in every cupcake). All of my cane sugar cupcakes rose nicely. In the cupcakes, I didn't notice much of a different flavor (they still tasted really good despite sinking in the middle). But when I made fresh lemonade with the coconut sugar, all I could taste was burnt sugar. Does coconut sugar normally taste burned or could it have just been the brand I bought? I can't believe coconut sugar is so popular if it all tastes burned.
Best Answer
Pretty much all sugar, regardless of source, has to go through a series of refining steps in order to remove moisture and produce crystals. Common white "table sugar" that we're familiar with in Western countries is the most refined, having gone through a whole series of steps to precipitate and "wash" the crystals to produce a brilliant white. This process removes the molasses, which has a very distinct burned or toasted flavor, leaving a very pure sweetness.
Coconut sugar is produced from a different source (the coconut palm, obviously) and is reduced down to produce crystals in a similar way, but it's typically less refined afterwards. It doesn't technically contain molasses, but it does have similar impurities that produce a similar flavor. In fact:
Brown sugar, by the way, is commercially produced by blending molasses back into refined sugar. Less-refined sugar, which can have a brown hue, is often marketed as "raw" instead.
So: coconut sugar can vary, and the specific brand that you tried may have been one with more of a bitter, burned, or caramel-like flavor. You may have better luck with another, but keep in mind that most coconut sugars don't go through refining steps that produces a very pure sweetness like you'd be used to with common white sugar.
As for why it's popular... well, supposedly it's a bit healthier than cane sugars, particularly if you're concerned with blood sugar levels. Products made with coconut oil seem to be enjoying a trendy popularity, as do alternative sugars (like palm sugar) and it's a fair bet that coconut sugar is benefiting from both fads. It all comes down to marketing.