Sugar-Free Cookies Market Report 2026

The sugar-free cookies market size has grown strongly in recent years. It will grow from $6.27 billion in 2025 to $6.73 billion in 2026 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to growing diabetic population, rising health awareness, expansion of packaged bakery consumption, availability of artificial sweeteners, growth of specialty food retail.

The sugar-free cookies market size is expected to see strong growth in the next few years. It will grow to $9.32 billion in 2030 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to increasing demand for functional baked goods, rising adoption of plant-based sweeteners, expansion of health-focused snack categories, growing online food retail, increasing innovation in sugar-free formulations. Major trends in the forecast period include increasing demand for low-calorie bakery products, rising use of natural sugar alternatives, expansion of diabetic-friendly snack options, growing focus on clean ingredient labels, enhanced texture and taste formulations.

A rapid increase in the prevalence of diabetes is significantly driving the growth of the sugar-free cookies market. Diabetes is a long-term metabolic disorder characterized by elevated blood glucose levels, which over time can seriously damage the heart, blood vessels, eyes, kidneys, and nerves. Sugar-free cookies provide diabetic-friendly alternatives to regular cookies, allowing consumers to enjoy them without causing blood sugar spikes, while also contributing to improved nutrition and protein intake. These factors support the growth of the sugar-free cookies market. For instance, in March 2024, according to the Office for Health Improvement and Disparities, a UK-based government department, the percentage of people with type 1 diabetes in England receiving all 8 care processes at GP practices participating in the NDA rose to 43.8% in March 2023, up from 35.2% in 2022. Therefore, the rising prevalence of diabetes will drive the sugar-free cookies market.

Leading companies in the sugar-free cookies market are focusing on developing innovative products to cater to health-conscious consumers and strengthen their market position. Sugar-free cookies are baked goods made without added sugar, often using natural sweeteners, high fiber content, and ingredients suitable for special diets such as keto or gluten-free. For instance, in January 2023, HighKey, a US-based food manufacturer, launched sugar-free sandwich cookies. Each serving of two cookies contains 60 calories, 2 grams of net carbs, 7 grams of fiber, and no sugar. The cookies feature two crisp chocolate biscuits with a creamy vanilla-flavored filling, offering a tasty, diabetic-friendly snack. These innovations aim to meet growing consumer demand for healthier indulgences while maintaining appealing taste and texture.

In July 2024, Tate & Lyle, a UK-based company, acquired U.S.-based CP Kelco for $1.8 billion. This acquisition is intended to bolster Tate & Lyle's market presence in sugar-reduction ingredients and stabilizers. CP Kelco specializes in producing specialty hydrocolloids, which are widely used in various food applications, including sugar-free products.

Major companies operating in the sugar-free cookies market are Aunt Gussies Cookies And Crackers, Baker Street, Burtons Biscuit Company, Good Dees, Kravour Foods Private Limited, Galletas Gullon SA, Tedesco Group, Fat Snax., Wellversed, Pahal Foods Pvt. Ltd., Diabliss Consumer Products Pvt. Ltd., Nestlé S.A, Murray Biscuit Company, Bisk Farm Food Products Private Limited, Nutri Value Company, NutroActive Nutrition Limited, Unibic Foods India Private Limited, Protiwise Laboratories Limited, Lakanto, Arley S.L.U., Ferrero S.p.A., Mars Incorporated, Mondelez International Inc., Kellogg Company, Enjoy Life Foods LLC, Julian's Bakery Inc., Loacker.

North America was the largest region in the sugar-free cookies market in 2025. The regions covered in the sugar-free cookies market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the sugar-free cookies market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The sugar-free cookies market consists of sales of sugar-free brown toast, butterscotch cookies, toasted twist khari cookies, millet cookies, and multi-grain sugar-free cookies. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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