What It Is
Caramel is sugar that has been heated until it is cooked, but just before it burns. Since sugar isn’t Paleo, neither is caramel.
Paleo and Sugar
Not only does sugar have no nutritional value, it has been linked to all sorts of health problems. These include promoting the storage of nutrients as fat, and recent evidence has shown it may even fuel cancer cells.
If you’re still unconvinced, just check out Mark Sisson’s guide to sugar.