In a report on the US market, the research company said cosmeceutical sales are now worth $16bn and are expected to reach $21bn by 2012. Annual growth is already set on a high plane with the skin care, hair care and color cosmetics categories ranging in average growth from 4 to 7 percent between 2003 and 2007. Marketing, marketing, marketing! Packaged Facts attributed some of this success to the marketing efforts of manufacturers. Well built websites, TV informercials and shopping networks have all contributed to growth, educating consumers about the benefits of new products. Skin care is the largest niche accounting for $8.9bn but other niches are being explored as the market expands. Baby care drives growth Moving away from the staple anti-aging products for baby boomers younger customers are being sought out. Even babies have become a target. Packaged Facts said $35 infant skin moisturizer is an example of the growing number of cosmeceuticals for babies. Packaged Facts editor Cathy Minkler said: "The assortment of cosmeceutical products is constantly broadening. Cashing in on consumer demand "To cash in on consumer demand, marketers are creating extensions of existing brands, repositioning brands, or introducing new brands entirely. Sephora boutiques has opened in JCPenney stores and L'Oreal's La Roche-Posay and Vichy brands have been sold at CVS, for example." Rubbing the crystal ball Packaged Facts expects manufacturers to expand premium brands and retailers to award natural and organic-based products with better shelf space.