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Glycolic acid is safe to use in diabetics because it works in the superficial layer of the skin, where there is no lymphatics or blood supply. Therefore, unless it is added to a deeper peel, it won't ever come in contact with the blood stream. Even if it is added to a medium to deep peel, where is would come into contact with the blood stream, the limited area and low concentration would not be expected to affect blood sugar. This is why glycolic acid peels are considered safe in pregnancy by most as well.
Yes, it's safe to use a glycolic acid peel if you're diabetic. It's applied topically and isn't systemic, therefore, will have no affect on blood sugars.