Coconut oil is a natural moisturizer. It locks the moisture of your lips and makes them soft and supple. The oil forms a lipid layer on the skin that decreases water evaporation and the resultant dryness. Shea butter contains vitamins A and E, both of which soothe and moisturize chapped lips and dry skin. Shea butter creates a healing lip balm that protects your lips from the elements. Avocado oil. Oils like jojoba and grapeseed soak into the skin quickly, which is great for lotion, but not as good for lip balm. Oils like avocado last longer on the skin's surface, so they're good for lip balms. Cocoa butter. Cold, wind and dry air all wreak havoc on lips' thin skin. Cocoa butter, a rich fat derived from the same beans as chocolate, helps alleviate this problem. The emollient properties of cocoa butter act as a protective barrier by supplying and retaining moisture in the lips and skin. Beeswax contains natural emulsifiers, which help retain moisture in the skin. This is especially helpful for dry lips and chapped lips.