Peru balsam is widely used in the fragrance and flavor industry due to its warm, sweet, and balsamic aroma. It serves as a natural perfume ingredient in soaps, cosmetics, and perfumes, valued for its fixative properties that help prolong the scent.

In topical medicinal products, it acts as a mild antiseptic and skin protectant, often found in ointments and creams for minor skin irritations, wounds, and bedsores. It is also used in some cough syrups and expectorants for its soothing effect on the respiratory tract. Due to its antimicrobial properties, it can be found in certain dental preparations.

However, it may cause allergic reactions in sensitive individuals, so its use in consumer products is sometimes limited or monitored. It is also used in small amounts in the food and beverage industry for flavoring, but must be processed to ensure safety for consumption.