What is the difference between caster, granulated, icing and demerara sugar?
Mostly crystal size, plus whether any molasses remains — and crystal size matters far more in baking than people expect, because it determines how fast sugar dissolves and how much air it can trap.
The refined whites, by crystal size:
Granulated — medium crystals, the standard table sugar. Dissolves readily in liquid but slowly in fat, which is why it is a poor choice for creaming.
Caster (superfine) — finer crystals. The default for most baking, because it dissolves quickly and evenly. In creamed cakes the crystals act as tiny blades cutting air pockets into the butter; finer crystals mean more, smaller pockets, and a lighter, more even crumb. Using granulated instead commonly produces a denser cake with a slightly gritty texture.
Icing (confectioners') sugar — ground to a powder, with a small amount of anti-caking starch added. Dissolves almost instantly, which is why it is used for icings and dusting. The starch is why it is not a straight substitute in recipes needing structure, and why raw icing sugar has a faint chalky taste.
Preserving sugar — very large crystals, dissolving slowly so less stirring is needed and less scum forms in jam.
The ones containing molasses:
Demerara — large, crunchy, pale amber crystals with a little molasses. Its texture survives baking, which is why it is used as a topping.
Muscovado — fine, moist, high in molasses, strongly flavoured. The moisture affects a recipe's liquid balance.
Soft brown sugars — usually white sugar with molasses added back, which is why they clump and harden when they dry out.
Molasses is acidic, which matters chemically: it reacts with bicarbonate of soda, so swapping brown for white can change how a bake rises.
Practical substitution rules: you can make caster by briefly blitzing granulated, and icing sugar by grinding it finer with a little cornflour. Going the other way is not possible. Swapping brown for white changes moisture, acidity and colour, not just flavour.