Aerosol coatings segment anticipates growth; innovations seen in formulation and delivery systems.

Aerosol coatings, categorized as special purpose paints, find use in both consumer and industrial applications. Despite the economic downturn, certain end use segments are experiencing gains. Although relatively few companies compete in this niche market area due to the high barriers to entry and ongoing regulatory challenges, new product development and improved delivery systems are expected to fuel growth for aerosol coatings producers.

In 2007, the U.S. market for aerosol coatings totaled 15.4 million gallons valued at $174.4 million, according to a January 2009 report ("Paints & Coatings: A Market Opportunity Study Update," prepared for the United Soybean Board by Lee Orr, Omnitech International: http://www.soynewuses.org/downloads/MOPaints_and_Coatings.pdf). By 2012, market volume is expected to reach 18.0 million gallons with total sales of $241.0 million, which represents an average growth rate of 4.2% in volume terms and 9.5% in value terms.

The bulk of aerosol coatings are sold to the DIY market, according to Steven Nerlfi, a consultant with market research firm Kusumgar, Nerlfi & Growney (KNG). Industrial applications include commercial construction markets for marking off specific areas at construction sites, highway/pothole repair jobs, sewer or gas line installation projects, and OEM touchups for automotive and other manufacturing assembly lines.

Aerosol paints come in various sized cans that contain a suspension of resins and other formulation ingredients as fine solid particles in a solvent that is under pressure. A propellant, traditionally a hydrocarbon, is used to release the coating as a fine mist or spray.

About half of aerosol paints are formulated with alkyd resins, according to Lee Orr. Other common binders include acrylic and acrylic copolymers. Solvent-based coatings account for the vast majority of products on the market, but some waterborne formulations have been recently introduced. Two-component aerosol coatings have also been developed.

Major producers of aerosol coatings include Krylon (a Sherwin-Williams business), Rust-Oleum (an RPM business), and Valspar. Raabe is a leading manufacturer of custom color-match aerosol coatings for OEM markets and a toll manufacturer for a variety of industrial and consumer applications, it also sells many of its proprietary products under private label arrangements.

The barriers to entry into this market are high due to the specialized nature of the delivery system. "A lot of steps are required to prepare aerosol coatings for the market," notes Nerlfi. "It isn't only a matter of developing the formulation. Preparing the packaging system and filling the cans properly are both critical steps in the production process, and each presents its own challenges."

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Aerosol producers have also had to contend with anti-graffiti efforts that have resulted in proposed legislation targeting spray paint sales. (See recent issues of CoatingsTech for reports on legislative activity: April 2009, page 14; May 2009, page II--Ed.)

VOC compliance is also an issue that impacts aerosol paint manufacturers. New national emission standards for aerosol coatings went into effect in July 2009. Many producers met the requirements of regulations passed by the California Air Resources Board (CARB) in 2002, on which the new EPA standards are modeled. However, the new regulations differ in the method in which VOC content is determined. The ozone formation potential of individual components in a formulation must be determined and the total for the formulation must be under the maximum incremental reactivity (MIR) level.

"One advantage of this regulation is that it does allow for some flexibility in formulation development," notes Bob Bath, Raabe's manager of Quality Control and Product Stewardship. This flexibility may provide opportunities for attracting business away from traditional bulk paints, according to the company's technical manager, Paul Lewis. "As bulk paint is forced to meet more stringent VOC regulations, the flexibility in the MIR rule may make aerosol formulations more attractive for some applications."

To take advantage of this situation, though, aerosol coatings producers will need to demonstrate that their products can provide the performance and durability of traditional paints. Raabe has seen some initial switching in the automotive industry. "As aerosol coating technology advances, we expect to see more business being driven by this regulatory factor," adds Steve Hughes, Raabe's business unit manager.

The company's main business is in custom color matching. Raabe produces aerosol coatings in specific colors and gloss levels developed to match customer samples. They are used in OEM industrial processes for touchup on the assembly line, and final inspection. In some cases, OEMs also take the coatings out to their distribution channel (dealerships, installers, etc.) for field applications.

Rust-Oleum has aerosol coating products for both the industrial and consumer markets. Its major activity is in the DIY segment, with products for the contractor and home owner sold through big box retailers. Consumer business segments include rust prevention, general purpose, specialty, professional, and arts and crafts.

Both Raabe and Rust-Oleum view R & D and new product development as important aspects of their business operations. The introduction of water-based coatings, for example, is being explored by both companies for their consumer markets. Raabe has found that, due to performance and cost issues, there is low interest from the industrial sector. "We do see, however, some demand for waterborne aerosol products on the consumer side, where being 'green' can be an advantage," observes Hughes. Rust-Oleum has had a different experience. "We and other major aerosol coatings manufacturers offer water-based products for the consumer market," remarks Christine Silverman, director of Small Project Paints for the company, "but none of them are seeing great demand. While they perform well, the performance is different from traditional paints and it costs more. Consumers are not willing to make that trade off,"

For those customers that are interested in waterborne aerosol paints, and also for those demanding varying types of resins, Raabe uses dimethyl ether as a propellant. It is water soluble and also solubilizes many different types of resins which would not work with hydrocarbon propellants, according to Lewis. The company is also investigating the application of nitrogen as a propellant, which poses many challenges in paint spraying applications, where a consistent fine mist is required.

Rust-Oleum has focused on developing a new can design for its aerosol coatings. "The same packaging technology has been in use since aerosol paints were introduced in the 1950s," states Silverman. "We have introduced a new container that makes spraying paint much easier. The traditional tip has been replaced with a trigger that can be used to spray paint at any angle and also is much more comfortable."

AkzoNobel Aerospace Coatings announced in May 2009 that it will be offering its novel 2K formulation for high-performance aerospace coating applications in a new 250 ml aerosol package. The coating is used for touch-ups, providing a high quality finish and invisible repairs on special-effect mica colors, according to John Griffin, general manager for the Americas. "This coating improves the quality of aircraft touchups, increases the longevity of a painted livery, and ultimately reduces the total cost of maintaining the appearance of a fleet."

Krylon has launched its line of Fusion for Plastic[R] products, which do not require priming or sanding and are designed to bond to most plastics, PVC, and resins.

In addition to new packaging, Rust-Oleum has introduced the Universal line of products that are designed to adhere to any surface including plastic. The line also has rust prevention characteristics. In late spring 2009, Rust-Oleum also launched its Painter's Touch Ultra Cover 2X product, a general purpose aerosol coating that gives twice the coverage of competitor products.

"Our emphasis at Rust-Oleum is on making aerosol coatings easier for consumers to use. That includes improving the delivery system and developing more universal products that will eliminate the need to purchase multiple paint formulations for a project," Silverman explains.

Raabe, meanwhile, has developed products to address specific coating issues. Its new water-rinsable chalk striping paint for athletic fields is removed with water rather than requiring a chemical stripper, and is thus much more environmentally friendly, according to Hughes. The company has also developed a formulation that adheres to various plastics without need for a primer and an aerosol coating designed for repair and painting of leather and vinyl. Other new products include a line of textured coatings for home decor applications and an aerosolized graffiti remover.

"Despite the downturn in the economy, demand for aerosol coatings remains reasonably strong, and we anticipate that growth will only increase as the recovery begins to take hold," Silverman asserts.