Alchemy is a useful tradeskill for providing healing potions and short-term effects. Because the products it creates are consumable, there is always a need for alchemists' products.
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Alchemy is used for creating four things:
Most alchemy recipes require a vial (vendor-bought) and herbs. Because of the high need for herbs to create potions from, it is highly recommended that an alchemist's second profession is Herbalism.
Alchemy is a very broad field that provides effects for anyone. Regardless of your class or playstyle, there will be something you can use from Alchemy. This can be good reason to be an alchemist yourself, or to befriend one in case you need a potion later on.
In terms of making money, alchemy is one of the production tradeskills that can actually be profitable, but the supply and demand of certain potions changes tremendously based on what high-level characters need most at that time. For example, Greater Fire Protection Potions and their ingredients were hot commodities while most raiding guildes were trying to kill Ragnaros. Once guilds moved on beyond Molten Core, GFPP's stopped being nearly as important and their price dropped tremendously. Still, some potions are always useful -- casters will always need Super Mana Potions...at least until a bigger mana potion enters the game!
The benefits of being your own alchemist include the use of the Alchemist's Stone trinket
At level 68, a high-level alchemist has the option of specializing in potions, elixirs, or transmuting. They can only choose one, and a quest must be done for their area of focus. The quests can be found in Lower City of Shattrath.
When you choose your area of focus, there is a chance when producing items of that type that you will produce extras. So for example, if you were making five Super Healing Potions as a potion master, it's likely that one of those combines would produce 2-5 potions rather than just 1. Flasks are classified as Elixirs for masteries.
This is by no means a complete list.
Quests that are just for alchemists: Elixir for the Bladeleafs (Teldrassil, level 8)
Quests that require products from an alchemist:
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