I don't know whether coconut sugar is better than honey or not but I do know that coconut sugar, more specifically coconut PALM sugar, is not from the actual coconut. It is simply the coconut palm sap (nectar) from the coconut palm flowers, boiled, dried, and pulverized into granules. AFAIK it's not processed other than boiling and drying unlike cane sugar with is heavily refined using a centrifuge process and a chemical process. Coconut palm sugar seems to be similar to maple sugar, which is simply boiled, dried and granulated maple syrup. Seems that it might qualify as paleo, although as with all things sweet, in strict moderation.