Acetoxyacetic acid is primarily used in organic synthesis as an intermediate for the production of various chemical compounds. It finds application in the manufacture of pharmaceuticals, where it serves as a building block for active pharmaceutical ingredients (APIs). Additionally, it is utilized in the synthesis of agrochemicals, contributing to the development of pesticides and herbicides. The compound is also employed in the production of specialty chemicals, including dyes and pigments, where its reactivity aids in creating complex molecular structures. Its ester derivatives are sometimes used in the formulation of fragrances and flavoring agents due to their ability to impart specific aromatic properties.