Used primarily as an intermediate in the synthesis of pharmaceuticals and agrochemicals. It plays a key role in the production of certain analgesics and anti-inflammatory drugs due to its ability to introduce chloroacetyl functional groups in organic reactions. Also utilized in the preparation of dyes and UV stabilizers for polymers, where it contributes to enhanced light resistance in plastics and coatings. Its reactivity makes it valuable in forming complex molecules through nucleophilic substitution and condensation reactions.