What product is formed by the decomposition of oils or fats and acts as a strong water binder?

Glycerine, also known as glycerol, is a byproduct of the decomposition of oils and fats through a process called hydrolysis. It is a colorless, odorless liquid that is hygroscopic, meaning it has the ability to attract and retain moisture from the environment. This characteristic makes glycerine an excellent water binder, which is particularly valuable in cosmetic formulations, as it helps to hydrate and maintain skin moisture.

In contrast, petrolatum is a semi-solid mixture of hydrocarbons, often used for its occlusive properties rather than as a moisture binder. Lanolin is derived from sheep's wool and serves as an emollient, but it does not have the same water-binding capability as glycerine. Silicone compounds, often used for their unique texture and smoothing properties, do not function primarily as water binders either. Thus, glycerine stands out for its specific ability to effectively hold water, making it the correct choice for this question.