Used primarily as a reagent in organic synthesis, it plays a key role in the production of pharmaceuticals and agrochemicals. It is commonly employed in the acylation reactions to introduce the o-toluoyl group into various organic compounds, enhancing their chemical properties. Additionally, it is utilized in the manufacture of dyes and pigments, where it acts as an intermediate to create complex colorants. In the field of polymer chemistry, it serves as a building block for synthesizing specialized polymers with tailored characteristics. Its reactivity with amines and alcohols makes it valuable in creating esters and amides, which are fundamental in developing fine chemicals and active pharmaceutical ingredients.