(ECNS) - China's AI toy market is estimated to grow to 29 billion yuan (approximately $407 million) by the end of 2025, up from 24.6 billion yuan in 2024, according to China's Ministry of Industry and Information Technology (MIIT).

He Yaqiong, director general of the MIIT's Department of Consumer Products Industry, said at a press conference on Wednesday that China has built the world's most complete toy industry supply chain, backed by advanced manufacturing and a highly skilled workforce.

The official highlighted AI as a key driver of innovation in the toy sector. AI is giving toys a "new soul" and "opening a new track for competition," he said.

In recent years, wider adoption of new materials, technologies, and manufacturing processes has significantly expanded product variety and improved quality.

Products such as "blind boxes" and figurines continue to grow rapidly, driven by emotional and collectible value. Domestic retail sales of trend and collectible toys reached 55.83 billion yuan in 2024.

He noted that a growing number of innovative Chinese companies are strengthening their presence through original IP development and brand building. Their success is not only meeting domestic demand but also elevating China's influence in the global toy industry.

According to estimates, China's total domestic toy retail sales are projected to surpass 100 billion yuan in 2025, He added.

Official data shows that toy retail sales across China reached 97.85 billion yuan in 2024, up 25.5% from 2020. Toy exports hit $39.87 billion, 19.1% higher than in 2020, with more than 40% shipped to the U.S. and EU markets.

(By Zhang Jiahao)