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Here's an interesting thing about Arginine: your skin converts it into urea through the Krebs-Henseleit urea cycle. Urea is one of the most effective humectants your skin naturally produces.

A clinical study showed applying 2.5% arginine hydrochloride to atopic dermatitis skin showed significant urea levels in the stratum corneum and improved moisture in just four weeks.

Arginine is also a precursor to nitric oxide; nitric oxide improves microcirculation and supports wound healing and collagen synthesis.

One study found that an amino acid complex containing Arginine reduced skin irritation, improved hydration, and accelerated skin repair in clinical / in-vivo studies.

Arginine itself is an amino acid and not a fatty acid, oil, or ester. On its own, it's not a direct food source for Malassezia, or the yeast that causes fungal acne.

Being created from coconut oil means Cocamidopropyl Betaine is hydrating for the skin.

While Cocamidopropyl Betaine was believed to be an allergen, a study from 2012 disproved this. It found two compounds in unpure Cocamidopropyl Betaine to be the irritants: aminoamide and 3-dimethylaminopropylamine. High-grade and pure Cocamidopropyl Betaine did not induce allergic reactions during this study.

As a humectant, it pulls water into the skin. But it's a pretty minor moisturizing ingredient compared to other humectants, like glycerin.

Interestingly, it can act as a mild penetration enhancer. One in vitro study on human skin found a 12% concentration upped the absorption of mometasone furoate (a medicinal ingredient used to treat inflammatory skin conditions) up to 7%.

This ingredient is typically used at levels of 0.1-10% depending on the role it's playing.

A patch test study on eczema patients didn't find a significant increase in irritation versus the control group, but the potential for irritation rises at higher concentrations.