Used primarily in organic synthesis, it serves as a key intermediate in the production of various pharmaceuticals and agrochemicals. Its reactive chloroacetyl group makes it valuable for constructing complex molecules, particularly in the development of active pharmaceutical ingredients (APIs). It is also employed in peptide synthesis, where it acts as a protecting group for amines, ensuring selective reactions during multi-step processes. Additionally, its application extends to the synthesis of herbicides and fungicides, contributing to crop protection strategies. Its versatility in chemical reactions makes it a useful tool in research and industrial settings.