This chemical is primarily utilized in the synthesis of various organic compounds, particularly in the development of pharmaceuticals and agrochemicals. It serves as a key intermediate in the production of active ingredients used in herbicides and fungicides, helping to control unwanted plant growth and fungal infections in crops. Additionally, it is employed in the preparation of specialty chemicals, including dyes and pigments, due to its reactive chloromethyl group, which allows for further functionalization. Its role in organic synthesis is crucial for creating complex molecules with specific biological activities.