What is Panela Sugar? A Guide to the Unrefined Sweetener

December 28, 2025 •

4 min read

Did you know that Colombia is the world's largest consumer of panela, consuming over 34 kilograms per capita annually? This unrefined whole cane sugar, also known as panela sugar, is a traditional sweetener in Latin America celebrated for its unique caramel-like flavor and artisanal production process.

Quick Summary

An unrefined whole cane sugar, panela is made from boiled and evaporated sugarcane juice, which gives it a rich, complex caramel and molasses flavor. The traditional non-centrifugal processing retains more natural compounds compared to refined sugar, making it a popular ingredient in Latin American cuisine and beyond.

Key Points

Unrefined Sweetener: Panela is a traditional, unrefined whole cane sugar made from the boiled and evaporated juice of sugarcane, known by names like piloncillo in Mexico.
Rich Flavor Profile: Its minimal processing retains natural molasses, giving it a deep, complex flavor with notes of caramel and molasses.
Artisanal Production: Panela is often produced using traditional methods, where crushed cane juice is boiled and poured into molds to harden into solid blocks, cones, or discs.
Distinct from Brown Sugar: Unlike brown sugar, which is refined white sugar with added molasses, panela is processed to a much lesser extent and contains naturally occurring molasses.
Trace Nutrients, High Sugar: While it contains trace minerals like calcium and iron, panela is still high in calories and should be consumed in moderation, similar to other sugars.
Versatile in the Kitchen: Panela can be used as a substitute for brown sugar in baking and cooking, and is the key ingredient in traditional Latin American drinks like aguapanela.
Available in Various Forms: This versatile sweetener can be purchased as solid blocks, grated into fine granules, or in liquid form.

Understanding Panela Sugar: The Artisanal Cane Sweetener

Panela is a traditional, unrefined whole cane sugar popular throughout Latin America, often taking the form of solid cones, blocks, or discs. While many people are familiar with white and brown sugars, panela offers a distinct, rustic flavor profile that comes from its minimal processing. Instead of separating the sucrose crystals from the molasses, the entire cane juice is boiled down and allowed to solidify. This approach results in a sweetener that has a deep, complex, and earthy taste with pronounced notes of caramel and molasses. The level of processing is what truly sets panela apart, as it skips the refining and centrifugation steps common for most commercial sugars.

How is Panela Sugar Made?

Panela's traditional production process is straightforward and retains a handmade quality, especially among small-scale farmers in rural Latin America. The multi-step process involves:

Crushing the Sugarcane: Freshly cut sugarcane is pressed to extract the raw juice. In traditional trapiches (small mills), this may still be done with simple, manually-powered presses.
Boiling the Juice: The collected juice is filtered and then heated in large, shallow pans or vats. As the liquid simmers, water evaporates, causing the juice to thicken into a concentrated syrup.
Skimming Impurities: While the juice is boiling, workers continually stir and skim off any foreign substances or impurities that rise to the surface.
Molding and Hardening: Once the syrup reaches the right consistency, it is poured into molds. These can be various shapes, such as the truncated cones known as piloncillo in Mexico, or the blocks and discs common in other regions.
Cooling and Grinding: The molded syrup is left to cool and harden naturally. This is the finished product in its block form. For a granulated or powdered texture, the solid panela is later ground.

Panela vs. Brown Sugar: A Flavor and Texture Comparison

Many people confuse panela with brown sugar due to their similar color, but their differences in production lead to distinct characteristics.


Specification	Panela	Brown Sugar
Processing	Unrefined whole cane sugar; boiled and molded.	Refined white sugar with molasses added back.
Flavor	Complex, robust caramel and molasses with earthy notes.	Lighter, simpler caramel flavor from added molasses.
Texture	Varies from very hard blocks to fine, soft granules.	Soft, moist, and granular.
Mineral Content	Retains trace minerals like calcium, potassium, and magnesium.	Contains minimal minerals, primarily from the added molasses.
Moisture	Less moist than standard brown sugar, especially in block form.	High moisture content, which keeps it soft.
Melting	Dissolves more slowly, best grated or dissolved in liquid.	Dissolves easily and blends smoothly into batters.

Nutritional Considerations and Health Claims

It is often claimed that panela is a healthier alternative to refined sugar due to its minimal processing and retained minerals. While it does contain trace amounts of minerals like iron, calcium, and potassium, the quantities are generally not significant enough to constitute a meaningful health benefit. Panela is still a concentrated sugar source and should be consumed in moderation, just like any other sweetener. The presence of natural molasses and other compounds gives it a slightly lower glycemic index (around 55, similar to molasses) than pure sucrose, but this difference is not substantial enough to be considered a blood sugar management tool for those with diabetes. Moderation is key for all sweeteners, including panela.

Versatile Culinary Uses

Panela's deep, rich flavor makes it an incredibly versatile ingredient that can enhance both sweet and savory dishes.

Beverages: The most famous use is aguapanela, a traditional Colombian drink made by dissolving panela in hot water, often with a squeeze of lime juice. It can also be used to sweeten coffee, tea, and smoothies, adding a rich, caramel depth.
Baking: Substitute panela for brown sugar in recipes for cookies, cakes, and muffins. The resulting baked goods will have a more robust, earthy flavor.
Desserts: Create a delicious spiced syrup for desserts like buñuelos or rice pudding (arroz con leche) by simmering panela with water and spices like cinnamon and cloves.
Savory Dishes: Use panela to add a touch of sweetness to marinades and glazes for meats, or incorporate it into complex sauces like mole.
Toppings: Sprinkle grated panela over oatmeal, yogurt, or fresh fruit for a naturally sweet topping.

For more in-depth recipes and ways to use panela, consult a resource like Martha Stewart's guide to panela sugar, which offers tips on using it in various dishes.

Conclusion

In summary, panela sugar is a traditional, unrefined whole cane sugar that stands out from other sweeteners due to its minimal processing and deep, complex flavor profile. Made by boiling and evaporating sugarcane juice, it retains its natural molasses and a rustic taste with notes of caramel and earth. While it contains trace minerals not found in refined white sugar, it is still a concentrated sugar source that should be used in moderation. Its versatility makes it a valuable addition to both sweet and savory cooking, offering a richer, more nuanced flavor than standard refined or brown sugars. Whether used in beverages like aguapanela or to sweeten baked goods, panela provides a unique culinary experience rooted in Latin American tradition.

Comparison of Panela and Brown Sugar


Feature	Panela	Brown Sugar
Processing	Unrefined, non-centrifugal sugar made by boiling and evaporating sugarcane juice.	Refined white sugar with molasses added back after processing.
Flavor Profile	Robust, earthy, complex caramel and molasses notes.	Simpler caramel flavor.
Texture	Ranges from hard blocks to granules, depending on the final form.	Soft, moist, and fine granules.
Uses	Primarily used in Latin American cooking and beverages; adds deep flavor.	Common in North American and European baking for soft, chewy textures.
Dissolvability	Can be slow to dissolve, often grated or melted into a syrup first.	Dissolves easily and blends smoothly into liquids and batters.

Visit Martha Stewart's guide to panela sugar for more information

Frequently Asked Questions

Panela and piloncillo are essentially the same product, a non-centrifugal cane sugar. The primary difference is regional terminology and shape. 'Piloncillo' is the term most commonly used in Mexico, where it is typically molded into cone shapes, while 'panela' is used throughout Central and South America.

Yes, you can substitute panela sugar for brown sugar, typically at a 1:1 ratio. However, be aware that panela's flavor is richer and more complex due to its natural molasses content. If using solid panela, you'll need to grate it or dissolve it in liquid before adding it to your recipe.

Panela is less refined than white sugar and retains trace minerals, but from a caloric and sugar content standpoint, it is not significantly healthier. Both are concentrated sources of sugar and should be consumed in moderation. The health benefits are often overstated and do not change the fact that it is still sugar.

Panela and jaggery are both non-centrifugal cane sugars made through a similar boiling and molding process. Jaggery is widely used in Asia (particularly India) and may be made from sugarcane or other sources like palm sap. Panela is specific to Latin America and made exclusively from sugarcane.

Panela sugar is available at many health food stores, international grocery stores specializing in Latin American products, and online retailers. You can find it in various forms, including solid blocks and granulated powder.

Panela has a rich, earthy, and complex flavor. It carries distinct notes of caramel and molasses with a certain rustic quality that is more pronounced than standard brown sugar.

Yes, panela sugar is considered gluten-free. It is a product derived solely from sugarcane juice and does not contain any gluten-based ingredients.

Yes, panela's complex flavor profile makes it suitable for savory dishes. It can add depth to marinades, sauces, and glazes, where its caramel notes can complement salty and acidic ingredients.