TEN CHEMICAL SPECIALTIES
Most specialties post gains BRENDAN F. SOMERVILLE, Assistant Managing Editor, Washington, D.C.
ith an output this year of more than 2.5 billion units, the aerosols industry is well on its way to exceeding the 3 billion mark in 1970. Or so C&EN is forecasting for this year and next. Actual production of aerosols in the U.S. last year totaled 2.29 billion units, according to surveys conducted by the Chemical Specialties Manufacturers Association. That total represented a moderately good gain of 9.5% on the total number of aerosols filled in 1967 - 2 . 0 9 billion. The 1968 total as compiled by CSMA, the only organization or company that has published any aerosols statistics so far this year, confirms the forecast made by C&EN in this section of Facts & Figures last year that total output in 1968 would be about 2.3 billion units (C&EN, Sept. 2, 1968, page 128A). The aerosols industry looked upon the 9.5% increase in 1968 output over that in 1967 as only moderately good because the previous year's growth had been 14%. For an industry that next year will sell the equivalent of some 15 aerosol units to every man, woman, and child in the U.S. and which must be getting close to some level of saturation, a 10% growth is more than moderately good. According to CSMA aerosol survey estimates, the five largest volume products made in the U.S. last year were hair sprays and dressings; personal and hygienic deodorants and antiperspirants; starches and laundry products; finishes (paints: pigmented, metallic, or clear and including automotive finishes); and shaving lather.
W
Personal
products
The personal products category is the largest one among all of the groups of aerosols reported by CSMA. Last year, 1.17 billion personal products 106A C&EN SEPT. 1, 1969
aerosols were filled. (This is an "adjusted" number. A total of 165 companies in the U.S. reported on their 1968 output. The total number of personal products aerosols as reported by them was 997 million. CSMA adjusted this number upward by 178 million to account for nonreporting companies in the U.S. The association does not explain on what basis the adjustment is calculated.) Within the personal products category, hair sprays and dressings are the largest volume item. In 1968, there were 434.3 million filled. (This num-
ber is a proportion of the 997 million above rather than the adjusted total of 1.17 billion aerosols. CSMA does not publish adjusted totals for individual groups of products within the broad categories of adjusted totals such as personal products, household products, and the like.) Personal deodorants and antiperspirant aerosols represent the next largest product group among personal products and the industry filled 301.9 million of them in 1968. Shaving lather aerosols totaled 125.2 million units; colognes and perfumes (except after-
Production of nonfood aerosols increasing 18% this year...
. . . But food aerosols slated for much less
2.5
Billions of units
Millions of units
200
2.0 1.5 1.0 0.5
I I I I III I I I I II 1965 1966 1967 1968 1969
H H
CSMA figures
H H I Du Pont figures • C&EN forecasts based on CSMA statistics. * D u Pont projection.
.1965
1966
1967 1968
• •
CSMA figures
H H
Du Pont figuresc
1969
• C&EN forecasts based on CSMA statistics. * Ou Pont projection. c Includes refillable containers.
Sales of paint, varnish, and lacquer Millions of dollars
3000
2000
1000
1966
1967
1968
Industrial sales I
1970
1969
I Trade sales
Total sales
Sources: U.S. Department of Commerce; C&EN computer forecasts
shave) totaled 58.6 million units; and "other" personal products 36.2 million. These last comprise such items as shampoos, dental creams, sun tan preparations, hand lotions, body powders, after-shave products, and breath fresheners. Medicinal and pharmaceutical aerosols also fall within the personal products category. They comprise such things as room vaporizers, fungicides, burn treatments, topical antiseptics, oral medicinals, anesthetics, antibiotics, and contraceptives. In 1968, there were 20 million ethical (prescription) aerosols filled, and 20.6 million overthe-counter pharmaceutical aerosols filled. Although the pharmaceutical aerosol is quite old, maybe older than the aerosol in terms of pressurized packaging, it was not until the early 1950's that several pharmaceutical aerosols became commercially available. The first aerosol intended for oral inhalation did not appear until about 1955. Pharmaceutical
It is noteworthy that in 1953, only 1 million pharmaceutical aerosols were produced; less than 2 million were filled in 1955. Thereafter the number filled rose rapidly. In 1957, the number filled was 5.5 million; in 1958, 7 million; and by 1960, 10 million. In the early 1960's there was a really rapid rise in output. In 1964, it was 30 million pharmaceutical aerosols. Since then there has been some slowing-1965, 35 million units; 1966, about 37 million; 1967, some 41 million. Within these numbers, about 50% are prescription items. Of all the presently available pharmaceutical products in aerosol form, however, there are no more than eight to 10 different products that fall into this class and, according to Dr. Sciarra, most
Aerosols output gained 9.5% last year over 1967
aerosols
At CSMA's midyear meeting earlier this year in Chicago, Dr. John J. Sciarra, director of the graduate division and professor of pharmaceutical chemistry at St. John's University College of Pharmacy, Jamaica, N.Y., disclosed results of a study he had conducted on pharmaceutical aerosols. The growth of such aerosols, though not impressive compared with the overall growth of the aerosols industry, nevertheless has been phenomenal, Dr. Sciarra said. He figured that last year more than 50 million units of pharmaceutical aerosols were produced in the U.S. Output includes a range of more than 60 different products, from local anesthetics to products to treat migraine headaches.
likely fewer than five account for the major production. A consideration that might be remembered when looking at these statistics is that pharmaceutical aerosols are relatively expensive products; their average cost is $2.50 to $3.50. They have another limitation in that they are used only by that segment of the population suffering from some ailment. Nonetheless, more will be heard about pharmaceutical aerosols. The drug companies are greatly interested in the aerosol. Most of them have established new affiliates for the sale of over-the-counter pharmaceuticals. It is for this outlet that there is greatest interest for pharmaceutical aerosols. In household products, starches and laundry products continue to be the largest category. Last year about 150
1967
Product Animal products
Per cent change 1968 1967-68 Millions of units
9.3
10.4
+11.8%
39.5
45.0
+13.9
Coatings and finishes
195.3
214.0
+9.6
Food products
100.5
85.9
-14.5
Household products
577.9
571.8
-1.0
Industrial products*
20.6
24.7
+19.9
Insect sprays
91.6
92.2
+0.7
U000.5
1174.7
+17.4
55.7
71.7
+28.7
2090.8
2290.4
+9.5
Automotive*
Personal products Other Total, all aerosols
* Excluding paints. Source: Chemical Specialties Manufacturers Association SEPT. 1, 1969 C&EN 107A
Sales of soaps decline as detergent sales gain Billions of pounds
llllllllll
1965 ^ H Soap
I
1966 I Synthetic detergents
1967 1968 a Soap and synthetic detergents combined
1969*
« C&EN forecasts. Source: Soap and Detergent Association
million such aerosols were produced by CSMA's 165 reporting companies. More than 90 million room deodorants and disinfectants (excluding medicinal) were produced. Cleaners for glass, ovens, rugs, and fabrics—an area in which there has been new product development—totaled more than 74 million units in 1968. Output of household product aerosols totaled 571.8 million last year, a slight drop of 1% on the 1967 output of 577.8 million. A total of 92.2 million insect spray aerosols was filled last year, a gain of only 0.7%. Production of coatings and finishes in aerosol form gained fairly strongly in 1968 going to a total of 215 million from 195.3 million in 1967 —a 9.6% gain. Aerosol food products suffered a setback in 1968. Output dropped quite sharply—14.5%—from 100.5 million units in 1967 to 85.9 million units in 1968. This is an area of aerosol output that has not yet settled down to any kind of stable growth. Output of industrial-product aerosols made a very strong gain last year, going from 20.6 million in 1967 to 24.7 million in 1 9 6 8 - a 19.9% jump. Soaps and
detergents
Sales of soaps and detergents climbed to yet a new high last year, according to reports from 40 manufacturers in the sales census conducted by the Soap and Detergent Association. These manufacturers, representing a 108A
C&EN SEPT. 1, 1969
major segment of the industry, had aggregate sales of 5.77 billion pounds, some 4% higher than 1967 sales. The total value of sales was $1.5 billion, representing a gain of 4.4% on the value of 1967 sales. Last year was the 10th consecutive year that sales of soaps and detergents had established a new record. In the 1968 Facts & Figures Specialties section, the forecast for 1968 sales was 5.6 billion pounds and for 1969, 5.76 billion, but soaps and detergent makers exceeded the 5.76 billion level a year early. Sales of synthetic detergents in 1968 totaled 4.79 billion pounds, up 4.6% on 1967 sales. Their value was $1.13 billion, up 5% from 1967. Again detergent makers seemed to have been a year ahead in their sales growth compared with the forecasts that C&EN had made. Sales of soap in 1968 totaled 978,168,000 pounds and were valued at $366 million. It is to be noted that although soap sales volume increased by only 1.1%, it was an increase. Sales in 1967 were a tiny fraction above sales volume in 1966. Soap makers hope the trend in soap sales continues upward, although C&EN's computer forecast indicates a downward trend this year and next. If there has been very little of any note happening in the soap industry, detergent marketers have come up with a promotional gimmick that has all of the earmarks of the earlier biodegradability bandwagon. The big
thing in detergents last year (and it continues this year) is the use of enzymes in detergent powders. It has been described as a frenetic grabbing at market shares by Procter & Gamble, Colgate Palmolive, and Lever Brothers—that is the battle among them for the market for enzyme-active detergents and presoaks. The U.S. home laundry products market totals about $1.5 billion a year, and the three are after large hunks of it. Of course, the makers of enzymes are benefiting from the thrust of the enzyme-active products. Chas Pfizer, Enzyme Development Corp., and Monsanto stand to pick up a $25 to $30 million market for enzymes this year in laundry products. Automotive
chemicals
The various groups of automotive chemical production showed mixed results last year, as usual. Sales by producers of antifreeze totaled 153.6 million gallons in 1968, a gain of about 7% on the 1967 sales of 143.7 million gallons. The 1968 total is made up of 152.4 million gallons of ethylene glycol antifreeze, and 1.1 million gallons of methanol antifreeze. The increase in 1968 over 1967 was a good one because the previous year's gain was a very modest 2.4%. Sales of ethylene glycol antifreeze jumped from 142.2 million gallons in 1967 to 152.4 million last year; sales of methanol antifreeze fell from 1.5
million gallons in 1967 to 1.1 million last year. The breakdown of ethylene glycol sales went like this: 87.6 million gallons went for civilian use in various forms as quarts, gallons, and drums; 36.7 million gallons were sold in bulk to packagers for civilian use; 22.6 million gallons of ethylene glycol were sold to motor vehicle manufacturers for "drive away" or factory fill use; and a total of 2.6 million gallons was sold to government, packaged and in bulk. Of methanol antifreeze, 608,830 gallons (in varying size containers) went for sales to the public, and 529,208 gallons were sold to packagers. No methanol antifreeze was sold to auto makers for factory fill. Production of automotive fuel line antifreeze totaled 39.3 million individual-size consumer packages (less than 13 fluid ounces), only a very slight gain on the 39.1 million packages produced in 1967. CSMA, which reports these statistics, says that bulk production of auto fuel line antifreeze (that is, in quantities larger than 1 quart) cannot be disclosed because the numbers would be "too revealing.,> There was a drop in sales of some automobile cooling system chemicals last year. Output of cooling system cleaners was as follows: dry form (two-phase and single-phase types combined) 981,567 consumer-size packages. Formerly CSMA published statistics of the two forms of cooling system cleaners separately. For example, in 1967 output of dry form two-phase type was 960,639, and dry form singlephase 194,876 consumer-size packages for a total of 1.16 million packages. These items have shown ups and downs. As the combined totals go in 1964, output was 1.59 million, in 1965, 1.12 million, in 1966, 1.29 million. Output of cooling system chemicals in liquid form totaled 3.9 million consumer packages in 1968, a gain on the 1967 total of 3.5 million, but just ahead of 1966's 3.8 million packages. Output of consumer-size cooling system sealers in 1968 was: liquid form (except block sealers) 5.9 million (6.3 million in 1967); dry form (except block sealers), 653,937 (934,090 in 1967); heavy-duty and block sealers, 2.1 million (2.6 million in 1967). Production of cooling system inhibitors and combination water pump lubricants and rust inhibitors totaled 9.6 million consumer-size packages in 1968. Such output has remained reasonably steady close to the 10 million package market for many years. The total amount of hydraulic brake fluid compounded in 1968 was 10.3 million gallons. This total has seesawed a good deal in past years. It went from 9.3 million gallons in 1964
Sales of antifreeze climb as automotive brake fluid and cooling-system chemical sales decline 1966
Antifreeze sales, millions off gallons
140
Hydraulic brake fluid, millions off gallons compounded
10.25
Automobile cooling system chemicals, millions off consumer packages
27.6
Sources:
1967
144 9.55 24.4
1968
154 10.33 23.1
1969
158
1970
172
9.67 20.0
9.58 19.0
Chemical Specialties Manufacturers Association; C&EN computer forecasts
to 9.0 in 1965, 10.3 million gallons in 1966, and 9.6 million gallons in 1967. The amount compounded for export in 1968 totaled 1.6 million gallons (1.5 million gallons in 1967, and 529,559 gallons in 1966—CSMA has no figures available for gallons compounded for export for years prior to 1966). Of the total 10.3 million gallons of hydraulic brake fluid compounded in 1968, 7.3 million gallons were of 70R3, and 3.0 million gallons of 70R1. (The number of gallons of 7 0 R 2 compounded was too revealing to be disclosed.) In 1968 there was a very large jump of 44% (representing about 2.3 million gallons compounded) in gallonage of the heavy-duty 7 0 R 3 fluid. Number of gallons of 70R1 compounded fell from 3.6 million in 1967 to the 1968 figure of 3.0 million. Paint, varnish, and lacquer Sales of chemical coatings to U.S. industry totaled more than $1.16 billion last year, according to the U.S. Department of Commerce. That figure represented a 13.8% increase over sales in 1967. The chemical coatings industry produces factory-applied, organic finishes for thousands of products. Some of the larger finish users are the automotive, appliance, furniture, and packaging industries. Nearly every manufacturing industry uses chemical coatings of some kind. In 1968, chemical coatings accounted for slightly less than 50% of total paint industry sales. The other 50% ($1.4 billion in 1968) of the industry is composed of consumer paints, varnishes, and lacquers, which are called "trade sales" products. The paint industry's total sales of chemical coatings and trade sales products amounted to $2.5 billion in 1968. This was about 10% higher than sales in 1967. Output of paint, varnish, and lacquer last year totaled 843 million gallons, about 8% above production of 781 million gallons in 1967. Production of industrial product finishes and special coatings totaled 419 million gallons last year (about a 9.4% gain
on output in 1967). And 424 million gallons of trade sales products were produced last year compared with 398 million gallons in 1967, a 6.5% gain. It's likely that this year, overall consumption of paints, varnish, and lacquer will climb to about 875 million gallons. Sales of trade-sales products may rise to about 440 million gallons, and consumption of industrial finishes may be 435 million gallons. In a recent report on paint, Charles H. Kline & Co., Inc., indicates that although there is a good deal of concentration in the industry, 27 major coatings makers—all with paint sales of $15 million a year or more—represent a sales total of $1.47 billion or about 57% of the total industry. Despite this concentration, the Kline report says, paint manufacture is nonetheless one of the few remaining manufacturing activities that supports a large number of small companies. At least 1600 companies made coatings last year. However, Kline notes that there is a definite trend toward consolidation and diversification within the coatings industry. Between 1963 and 1968, 71 paint companies changed ownership, often by merging small companies into one sizable company such as Grow Chemical. Many paint companies such as Minnesota Paints have been reducing specialization in one of the two major types of coatings (trade sales or industrial) by buying other paint companies to round out their product lines. Kline also notes that the paint industry is only moderately profitable and profits have been declining in recent years. Its margin on sales was once close to or higher than the average for all manufacturing. Since 1964, the industry's performance has fallen below the average. In 1968, its margin on sales was only 4.7% compared with all manufacturing's 5.7%. Its return on investment, once higher than that of all manufacturing because of the paint industry's relatively low capital requirements, has also fallen. Industry results for 1968 showed a return of 11.3% on net worth compared with 13.1% for all manufacturing. SEPT. 1, 1969 C&EN
109A
