Used primarily as an intermediate in organic synthesis, this compound serves in the preparation of heterocyclic systems, particularly in the construction of benzofurans and related structures. Its reactive aldehyde and ketone functionalities allow for condensation and cyclization reactions, making it valuable in pharmaceutical and agrochemical research. It is also employed in the development of dyes and functional materials due to its ability to form conjugated systems. The hydrate form enhances stability during storage and handling, facilitating its use in multi-step synthetic routes.