The process of forming tiny particles is granulation. It's granulation that results in fine specks of sugar that are perfect for sprinkling on your buttered toast with cinnamon.
Breaking things down into small grains — or building larger grains from a powder — is what granulation is all about. It's a form of processing, whether it's salt or sugar, medicines in a pharmacy, or chemicals in a lab. There's also the granulation of sand on a beach, which happens over years as large stones are slowly broken down into smaller particles, or grains of sand.