Why use 100% Baby Alpaca Yarn? Alpaca is a naturally antimicrobial, hypoallergenic, flame resistant fiber. I can't imagine using anything else to craft special items for my loved ones. The yarn itself is super soft and luxurious. You will love the silky feel of it on your skin. It's not itchy like wool and has many other great beneftis to include moisture wicking and the best thermal protection of even all of the luxury fibers.