Phenoxyacetyl chloride is primarily used as a key intermediate in organic synthesis, particularly in the production of pharmaceuticals and agrochemicals. It is widely employed in the synthesis of phenoxyacetic acid derivatives, which are essential in the development of herbicides and plant growth regulators. Additionally, it serves as a reagent in the preparation of various active pharmaceutical ingredients (APIs), including antibiotics and anti-inflammatory drugs. Its reactivity with amines and alcohols makes it valuable for creating esters and amides, which are foundational in drug development and fine chemical manufacturing.