If you've been looking for an easy dairy-free caramel sauce that actually tastes like caramel, this is the recipe I keep coming back to.
It's made with simple pantry ingredients, requires no candy thermometer, and turns into a rich, pourable sauce that's perfect for waffles, pancakes, ice cream, apple slices, or straight from the spoon (I've definitely done that).
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Dairy Free Caramel Sauce
The first time I made it, I honestly wasn't expecting much from coconut milk and coconut sugar. I was wrong. After one batch, I started finding excuses to drizzle it on everything.
Julia's Why-You'll-Love-It List
- I can make it with simple pantry ingredients instead of buying expensive store-bought caramel sauce full of preservatives and other unnecessary ingredients.
- The flavor is rich and caramel-like, and nobody guesses it's made with coconut milk.
- I love how versatile it is. I make it thicker for desserts or thin it out for waffles, pancakes, and oatmeal.
- The first time I made it, I thought it was too thin and almost kept cooking it. Thankfully, I didn't because it thickened beautifully as it cooled.
Ingredients
- Coconut milk - Use full-fat canned coconut milk for the best results. This is what creates the creamy texture. I strongly recommend canned coconut milk over carton coconut milk. The canned version contains much more fat and thickens far better.
- Coconut sugar - This gives the sauce its deep caramel-like color and flavor. Coconut sugar is still my favorite because it creates a slightly richer flavor. You can also use:
- Brown sugar
- Cane sugar
- Organic sugar
- Date sugar
- Salt - Don't skip it. The salt balances the sweetness and makes the caramel taste much more rounded.
- Vanilla extract - Vanilla isn't mandatory, but I think the sauce tastes noticeably better with it. If using vanilla paste, use about ½ teaspoon.
- Coconut oil or butter - I tested this recipe both ways. My first version used dairy-free butter, and I do think it creates a slightly creamier texture. The flavor difference is small, though. If you don't have dairy-free butter, coconut oil works beautifully.
- Substitutions:
- Vegan butter
- Lactose-free butter
- Coconut oil
- Neutral vegetable oil
📋 You can find the full ingredient list in the Recipe Card below the article.
How To Make Dairy Free Caramel Sauce
- Melt the butter or oil: Add the butter, vegan butter, or coconut oil to a medium saucepan over low heat. Allow it to melt completely.
- Add the remaining ingredients. Whisk in: coconut milk, coconut sugar, water, salt, vanilla. Everything will look very thin at this stage. That's completely normal.
- Simmer slowly: Keep the heat low and whisk occasionally. This is where patience matters. For the first 20 minutes, it honestly looks like nothing is happening. Don't increase the heat.
- Around the 30-minute mark you'll notice the mixture becoming darker, thicker, and more glossy.
- Watch for visual cues. The sauce is ready when:
- It has reduced significantly
- The bubbles become slower and thicker
- The mixture coats the back of a spoon
- My batches usually take between 30 and 50 minutes.
- Cool: Remove from the heat. The sauce will still seem fairly loose. This is the step that surprises most people. As it cools, it thickens dramatically. Let it cool completely before deciding whether it needs more cooking time.
Not every batch is perfect! If your caramel sauce ends up looking like this, don't panic. It usually means the sauce simmered a little too long or didn't have quite enough water. I did this on my first test batch too.
The good news is it's easy to fix-simply whisk in a little WARM water until the sauce loosens up and becomes smooth and pourable again.
Tools I Used
All-Clad Stainless Steel Sauce Pan with Lid 3 Quart
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Buy Now → Tips
- Don't rush the simmering process. Low and slow creates the best texture.
- If the sauce becomes too thick, whisk in a little warm water.
- If you're making this for waffles or pancakes, leave it slightly thinner than you think you need.
- Simmer gently, don't boil. Cooking the sauce over high heat can cause the coconut milk to become grainy (tiny white bubbles) and affect the silky texture.
- You can make this several days ahead and keep it refrigerated until needed.
- For a deeper caramel flavor, use coconut sugar instead of white sugar.
- If the sauce starts sticking around the edges, lower the heat immediately.
- A squeeze bottle makes serving much easier and less messy.
How I Like To Eat It
This caramel sauce is sooo delicious with:
- Homemade waffles
- Pancakes
- French toast
- Baked apples
- Make ice cream sundaes!
- Banana bread
- Oatmeal
- Yogurt bowls
Tip: One of my favorite ways to use it is drizzled over warm waffles with sliced bananas and a sprinkle of cinnamon.
Storing Leftovers
- To Store. Transfer to an airtight jar or squeeze bottle. Store in the refrigerator for up to 3 weeks.
- To Freeze. Freeze in a freezer-safe zip-top bag for up to 3 months. I don't recommend freezing in glass jars because the contents may expand.
- To Make Ahead. This recipe is perfect for making ahead. In fact, the texture often improves after an overnight chill. The sauce becomes very thick in the refrigerator.
- To Reheat. Don't worry if the caramel seems very thick after chilling-that's completely normal. Warm it gently in the microwave or on the stovetop and whisk in a little water until it reaches your desired consistency.
More Dessert Ideas
Before You Head Out
If you gave this recipe a try, I'd be so thankful if you could leave a ★★★★★ rating and review below. It helps other readers, supports my work, and means the world to me. Thank you for being part of The Yummy Bowl family. Happy cooking! ❤️
Recipe Card
Dairy-Free Caramel Sauce
Ingredients
Equipment
Method
- Melt the butter or oil in a medium saucepan over low heat.1 teaspoon coconut oil
- Add the coconut milk, water, coconut sugar, salt, and vanilla. Whisk to combine.13.5 ounces full-fat canned coconut milk, ½ cup coconut sugar, ½ teaspoon salt, 1 teaspoon vanilla extract, 4 tablespoons water
- Simmer over low heat for 30-50 minutes, stirring occasionally. Continue cooking until the mixture has reduced and thickened. Remove from the heat.
- Allow the sauce to cool completely. Add additional warm water if a thinner consistency is desired. Transfer to a jar or squeeze bottle and refrigerate.
- Enjoyed this recipe? Leave a quick 5-star rating and review to let me know!
Nutrition
Notes
- Butter: My first batches were made with ¼ cup lactose-free butter, and I do think it creates a slightly creamier sauce. That said, coconut oil works almost as well and doesn't noticeably change the flavor. Vegan butter is another great option if you want to keep the recipe fully dairy-free.
-
Don't judge the texture too early. The sauce may still look thin after 30 minutes, but it thickens significantly as it cools and will become even thicker after chilling overnight.If your caramel becomes too thick, simply whisk in a little warm water, 1 tablespoon at a time, until it reaches your desired consistency.The recipe yields ¾ to 1 cup of caramel sauce:
- 8 servings = about 2 tablespoons per serving (most common for drizzling over desserts, pancakes, waffles, etc.)
- 12-16 servings = about 1-1½ tablespoons per serving (for lighter drizzling)
- 4 servings = about ¼ cup each (for serious caramel lovers 😄)
Tried this recipe?
Let us know how it was!Note: Nutrition information is estimated and varies based on the products used.
Full Nutrition Disclaimer can be found here.
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Julia
This dairy-free caramel sauce is smooth, creamy, and surprisingly easy to make. Perfect for drizzling over waffles, pancakes, fruit, and desserts.
Helinor
Wowww. This was delightful. I added a small drizzle of sesame oil and it gave it a beautiful, gently nutty depth. Thank you
an actual vegan
why describe this as "Vegan" and include butter in the recipe? How insulting to vegans...
this makes me unlikely to trust any other recipe from this site.
Julia | The Yummy Bowl
I've explained this in the ingredients tips!
Julia
A delicious alternative to a traditional Caramel sauce.