Alpaca Wool Alpaca wool is very special and makes very special clothing. Alpaca is similar to sheep’s wool but is softer, silkier and more luxurious. To insulate against the freezing cold and summer heat of the high Andes, alpaca's fur fibre is hollow which means the wool is very warm, strong, durable and remarkably light too! Alpaca wool is also hypoallergenic because, unlike sheep’s wool, it contains no lanolin at all.