Praise be to Allah.
Using this lipstick is not regarded as altering the creation of Allaah, rather it is a temporary adornment, like lipstick, kohl and so on. But the permissibility of its use is limited to a number of things:
1 – It should not be harmful to the skin, because of the general meaning of the words of the Prophet (peace and blessings of Allaah be upon him): “There should be neither harming nor reciprocating harm.” Narrated by Ahmad and Ibn Majaah (2341); classed as saheeh by al-Albaani in Saheeh Ibn Majaah.
So one should make sure that this substance is safe and suitable for the skin.
2 – Using it should not be an imitation of kaafir or immoral women, such as if a woman wants to use it to look like So and so among those woman, because of the general meaning of the evidence which forbids imitating kaafir and immoral women, such as the words of the Prophet (peace and blessings of Allaah be upon him): “Whoever imitates a people is one of them.” Narrated by Abu Dawood (3512); classed as saheeh by al-Albaani.
3 – Using it should not involve any kind of extravagance, because Allaah says (interpretation of the meaning):
“and waste not by extravagance. Verily, He likes not Al‑Musrifoon (those who waste by extravagance)”
Extravagance means spending too much money on permissible things.
Some women spend a great deal of money on these cosmetics, following fashion or seeking so-called beauty, when there may be no need for that. If she spent this money or some of it on feeding a hungry person or clothing a poor person, that would be better for her and bring a greater reward.
And Allaah knows best.