In actual fact, sugar is both.  However, the source of the sugar determines whether or not it will benefit you, or impair your health. Put simply, sugar is the simplest form of carbohydrate, an essential nutrient for life.  Carbohydrates are divided into two groups: complex and simple. Complex carbohydrates include vegetables, grains, legumes and nuts.  Simple carbohydrates include cane sugar, honey, fruit, pasta and white rice.