Colloidal oatmeal is a form of oats used in skincare products. Colloidal oatmeal is a natural ingredient used in the formulation of a range of personal care products for relief of dry itchy skin. The protective layer created by the oatmeal helps replenish the skin's natural moisture. Colloidal oatmeal helps temporarily protect and relieve minor skin irritation and itching due to eczema.