Thioglycolic acid is widely used in the cosmetic industry, particularly in hair care products. It is a key ingredient in permanent hair waving and straightening formulations, where it breaks the disulfide bonds in keratin, allowing hair to be reshaped. After the desired style is achieved, a neutralizer is applied to reform the bonds, setting the new structure.

In the pharmaceutical sector, it serves as a precursor in the synthesis of various drugs, including those used to treat skin conditions and infections. Its ability to act as a reducing agent makes it valuable in certain chemical reactions during drug production.

Thioglycolic acid is also utilized in the production of PVC stabilizers, where it enhances the thermal stability of the material. Additionally, it is employed in the textile industry as a reducing agent in dyeing processes, ensuring even and vibrant color application.

In analytical chemistry, it is used as a chelating agent to bind and remove metal ions from solutions, aiding in the purification and analysis of samples. Its versatility across industries highlights its importance in both industrial and laboratory applications.