Lanolin anhydrous is widely used in the cosmetic and skincare industry as a moisturizing agent due to its excellent emollient properties. It helps to soften and smooth the skin by creating a protective barrier that locks in moisture, making it ideal for treating dry, chapped, or irritated skin. It is commonly found in lip balms, hand creams, and lotions. It is also used in baby care products to reduce irritation and diaper rash.

In the pharmaceutical industry, it is used as a base for ointments and creams to enhance the delivery of active ingredients, promote healing, and reduce inflammation in conditions like eczema, dermatitis, minor burns, and wounds. Its hypoallergenic nature makes it suitable for sensitive skin applications.

Additionally, lanolin anhydrous is utilized in the textile industry as a lubricant for wool fibers during processing, reducing breakage and improving fiber quality. It also finds application in industrial settings as a corrosion inhibitor and in the manufacture of leather products to maintain suppleness.