Used primarily in organic synthesis, it serves as a key intermediate in the production of pharmaceuticals, agrochemicals, and dyes. It is employed in the acylation reactions to introduce the chloroacetyl group into various compounds, enhancing their chemical properties. In the pharmaceutical industry, it is utilized to synthesize active ingredients for medications, including local anesthetics and antihistamines. Additionally, it plays a role in the manufacture of herbicides and insecticides, contributing to crop protection. Its reactivity with amines and alcohols makes it valuable for creating complex molecules in research and industrial applications.