Used primarily in organic synthesis, it serves as an acylating agent to introduce the acetoxyacetyl group into various compounds. It is commonly employed in the production of pharmaceuticals, particularly in the synthesis of active pharmaceutical ingredients (APIs) where it helps in modifying the chemical structure to achieve desired therapeutic effects. Additionally, it finds application in the manufacture of specialty chemicals, including dyes and pigments, where it acts as a key intermediate. Its reactivity with alcohols and amines makes it valuable in creating esters and amides, which are essential in polymer and resin production. Handling requires caution due to its corrosive nature and potential to release toxic fumes upon reaction.