Thioglycolic acid is widely used in the cosmetics industry, particularly in hair care products. It is a key ingredient in hair perm solutions and hair straightening treatments, where it breaks the disulfide bonds in keratin, allowing hair to be reshaped.

In the pharmaceutical sector, it serves as a reducing agent and stabilizer in certain drug formulations. It is also utilized in the production of thioglycolates, which are used in depilatory creams for hair removal.

In industrial applications, thioglycolic acid is employed as a corrosion inhibitor in metalworking fluids and as a stabilizer in PVC production to prevent degradation during processing. Additionally, it is used in the synthesis of various organic compounds, including pharmaceuticals and agrochemicals.

Its ability to act as a chelating agent makes it valuable in water treatment processes, where it helps to remove heavy metals from wastewater.