Used primarily as an intermediate in the synthesis of herbicides, particularly in the production of aryloxyphenoxypropionate class compounds. These herbicides are effective against grassy weeds in broadleaf crops. The compound's reactivity allows it to acylate various alcohols and amines, making it valuable in constructing ester and amide linkages in agrochemical manufacturing. It is also employed in the preparation of specialty chemicals where a phenoxy-based acylating agent is required. Due to its sensitivity to moisture, it is typically handled under anhydrous conditions in industrial processes.