Veganism by its very definition is avoiding all animal products in personal use, from food to clothing to cosmetics. With so many tricky ingredients out there, it makes no sense to me to continue using an ingredient that clearly is derived from animal sources and contributes to the suffering of innocent creatures. Animals are not ours to use.
Lanolin has long been used in cosmetics for its moisturising properties on the skin. Commonly found in body lotions & creams and lip balms, lanolin is extracted from the wool of sheep- or more specifically from oil glands.