Substitute honey in recipes in place of demerara sugar. Using honey as a substitute for demerara sugar adds moisture and a smoother texture than sugar does while still adding the necessary sweetness to the recipe.
Confectioners' sugar, granulated sugar and brown sugar also do well as substitutes for demerara sugar. None of these other sugars impart the moisture that honey does. Each has a slightly different texture and flavor profile in finished goods.
Some people mistake brown sugar for demerara sugar, which is large-grained and originated in Guyana. Unlike brown sugar, which is granulated sugar bathed in molasses, demerara sugar is made from raw sugar cane or sugar beets and is only partially refined.