Cocoa butter is high in fatty acids which is why it's often touted for its ability to hydrate and nourish the skin and improve elasticity. The fat in cocoa butter forms a protective barrier over skin to hold in moisture. It is also rich in natural plant compounds called phytochemicals. Heals Chapped Lips: It can be used with essential oils like grapefruit vanilla orange or peppermint oil to make flavorful lip balms that are also hydrating for delicate skin.