Used primarily as an intermediate in organic synthesis, especially in the production of dyes and pigments. It serves as a key building block in the manufacture of high-performance pigments used in coatings, plastics, and printing inks. Its structure allows for the introduction of acetoacetyl functional groups, enabling coupling reactions that form colored compounds. Also employed in the synthesis of pharmaceuticals and agrochemicals due to its reactivity and stability under various reaction conditions. Its solvating properties make it useful in some specialty solvent applications, particularly in reactions requiring polar aprotic environments.