9 Baking Substitutes to Beat High Prices, Shortages

If you want to try making your own baked goods to cut costs, you’re in for a rude awakening. Inflation and supply shortages mean some ingredients are much more expensive than they used to be. While American households aren’t facing the widespread shortages of pandemic days, the high cost of baking supplies can still be frustrating. Fortunately, there are low-cost baking substitutes for most in-demand ingredients that can make your recipes healthier and, in some cases, less expensive.

Why Baking Ingredients Are Out of Stock or More Expensive

The stories of rising grocery prices have become an all too common trend. In January of 2025, the U.S. Bureau of Labor Statistics reported the price of a dozen eggs had nearly doubled compared to the same time last year. That shortage has been primarily caused by bird flu outbreaks.

Dairy farmers face higher operating costs due to labor shortages and are struggling to increase production to meet seasonal demand. With markets uncertain after the implementation of new tariffs, the Dairy Market is also facing new economic headwinds.

The war in Ukraine affected flour and oil supplies, crafting a recipe for a perfect storm of supply shortages and rising prices. However, bakers can still find thrifty baking substitutes for common ingredients.

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9 Baking Substitutes for Common Ingredients

The following ingredients have substitutions in case the typical ingredient is out of stock, too expensive or you realized too late you were out of it.

Note: In the substitution tables below, a 1-to-1 ratio means you can keep the measurements in the recipe exactly the same — i.e., 1 cup butter to 1 cup coconut oil — and count on a similar texture or rise. Flavor profiles may vary.

1. Best Substitutes for Butter in Baking

At $4.91 per pound, butter prices have risen sharply since a 2020 low of $3.32 per pound. 
Fortunately, lactose-intolerant and vegan folks have proven that plenty of ingredients provide the richness of butter called for in recipes without dairy. In addition to obvious butter substitutions like coconut oil and shortening, bakers can get creative with yogurt, banana and even applesauce in place of unsalted butter.

A word of warning that applesauce results in denser baked goods and doesn’t contain as much fat as other butter substitutes. If you opt for applesauce as a substitute for recipes with melted butter, consider adding a tablespoon or two of oil to improve flavor and texture.

2. Best Substitutes for Eggs in Baking

Substituting eggs is a tricky endeavor for bakers. However, it may be necessary as shortfalls, a bird flu epidemic and record prices have come home to roost. Eggs have seen steep increases, with prices going from $1.45 a dozen only a few years ago to over $4 per dozen in many areas of the country.
Some ingredients provide the same lift to baked goods as eggs, notably baking powder and baking soda. But getting the ratio correct is complicated. Surprisingly, foodies concur that carbonated water is the best egg substitute for baked goods like cakes and muffins.

If you don’t have baking powder, you can use a third of the same amount of baking soda.

Keep in mind that using bananas creates a different flavor profile as well as a gummier texture. But for some baked goods, the additional moisture in bananas can be a boon for your taste buds.

3. Best Substitutes for Sugar in Baking

Don’t panic just yet, but there have been reported shortages of granulated sugar. Most are localized because of shipping delays combined with high demand. But it makes sense to pick some up if you find a sale as sugar is currently running close to its historic high of more than a dollar per pound.

While you can substitute brown sugar for granulated sugar in a 1-to-1 ratio, you should use 1¾ cups of powdered sugar for every cup of regular sugar.

If supply rather than cost is the issue, many bakers find honey, agave and even maple syrup work well, However, those cost significantly more per pound.

It is recommended when using thinner syrups such as agave and maple to reduce the other liquids in the recipe by 3 to 4 tablespoons to achieve the same consistency. You may also want to reduce the oven temperature by up to 25 degrees to prevent premature browning.

4. Best Substitutes for All-Purpose Flour in Baking

According to the U.S. Bureau of Labor Statistics, flour prices remain high compared to years past, averaging about 55 cents per pound. Inflation combined with shortages from an uncertain market mean the cost of flour won’t see relief anytime soon.

Although all-purpose flour is the cheapest way to make baked goods, many alternative flours exist. Knowing that cake flour is simply flour combined with cornstarch might save you a bundle at the grocery store. Also chickpea, rice and almond flour all make acceptable flour substitutes in baked goods.

If you decide to use rice flour, add a binding agent such as cornstarch and xanthan gum to hold baked goods together. Almond flour can be used interchangeably with all-purpose flour but may require an extra egg for binding and rising.

5. Best Substitutes for Chocolate in Baking

Chocolate shortages aren’t new, but a recent wave of disease in West Africa has sent cocoa prices surging to a 50 year high. Valentine’s Day this year was more expensive for chocolate than ever, and unfortunately, there doesn’t seem to be any relief in sight.

Fortunately, substitutes for chocolate in recipes abound. Certainly, cocoa powder is less expensive (add some butter or oil with it), but that will work well only in recipes that use chocolate chips. Carob chips, chopped nuts or even raisins may do the trick and add a little something extra to your favorite treats.

6. Best Substitutes for Yeast in Baking

Pandemic breadmaking caused a serious run on yeast a few years back, followed by supply chain disruptions that lasted more than a year. Currently, buying yeast in bulk is the best money saver and allows bakers to spend about $1.43 per ounce.

If you cultivated a sourdough starter months ago, pat yourself on the back because you’re all set. For the rest of us, however, there are a few yeast substitutes that’ll do in a pinch and act as low-cost leavening agents.

When using yeast substitutes that involve buttermilk or lemon juice, you’ll need to slightly reduce the liquid in your recipe by a teaspoon or two to account for the additional moisture.

7. Best Substitutes for Milk in Baking

The same transportation and labor issues affecting butter supply are also slowing milk production. While widespread milk shortages are not anticipated, there may be some intermittent lag between demand and supply.
The U.S. Department of Agriculture indicates whole milk prices are averaging $4.02 per gallon, or about 25 cents per cup. Fortunately, several milk substitutes are relatively inexpensive and have a longer shelf life.

If you’re desperate, you can use water as a 1-to-1 replacement for milk in baking recipes. Water as a milk substitute has the bonus of being free, but be sure to put in a little extra fat for flavor.

If you have a can of sweetened condensed milk handy, you can use it as a milk substitute the same way you would use evaporated milk, but be sure to cut back on the sugar in the recipe.

8. Best Substitutes for Oil in Baking

Sunflower oil shortages in Ukraine pressure the rest of the world’s oil supplies. So you may discover that many of the oils you might commonly use for baking, such as canola or vegetable oil, are more expensive this year. Current consumer prices for canola oil are about 8 cents per ounce or 64 cents per cup.

If you find oil in short supply on the grocery shelves during your next shopping trip, consider one of these baking oil replacements that substitute half of the oil with fruit purees.

Professionals recommend cutting baking time by a fourth when you use fruit purees for part of the oil in baking recipes.

9. Best Substitutes for Vanilla in Baking

The world’s vanilla supplies track closely to the success of crops and harvests in Madagascar. Weak flowering promises a lackluster vanilla season. While the mass shortages of vanilla extract several years ago are unlikely, vanilla bean problems are here to stay. Current prices for vanilla extract are almost $3 per ounce.
Vanilla is a pervasive flavor, but there are several other ways to add some zing to baked goods. You could use something like pumpkin pie spice, but many spices have distinct tastes that might not jibe with your recipe. Consider instead maple syrup, citrus zest or a splash of bourbon, rum or even coffee to perk up the flavor profile of your favorite treats.

Save Money With More Baking Substitutes

As history has proven, there are many reasons why ingredients that were once plentiful may become short in supply at your grocery store. Learning how to adapt recipes to accommodate what’s in season and in store can be a money-saving skill that keeps your budget trim for years to come.

Kaz Weida is a senior writer at The Penny Hoarder.