LABUBU dolls are displayed at the 2025 China International Fair for Trade in Services(CIFTIS) in Beijing's Shougang Park on September 10, 2025. Photo: VCG

 
The surging popularity of toys such as blind boxes and collectible figures, which deliver emotional resonance and collectible appeal, have made them new growth drivers of consumption in China in recent years, with the toy retail market projected to exceed 100 billion yuan ($14 billion) in 2025, an official said on Wednesday.

Sales of toys such as blind boxes and collectible figures have witnessed rapid expansion, offering young consumers a source of joy while establishing themselves as a fresh engine for industry growth, He Yaqiong, head of the Consumer Goods Industry Department at the Ministry of Industry and Information Technology (MIIT), said at a press briefing on Wednesday.

Retail sales of trendy and collectible toys, along with related merchandise, reached 55.83 billion yuan in 2024, MIIT data showed.

"A wave of innovative domestic firms has demonstrated robust capabilities in developing original intellectual property (IP) and managing brands, not only meeting local demand but also propelling Chinese creativity onto the global stage and bolstering the international profile of the nation's toy sector," said He.

"China has established the world's most comprehensive and sophisticated toy industry supply chain, backed by advanced production technologies, a highly skilled workforce, and pronounced competitive advantages. This enables the country to deliver high-quality, cost-competitive toys to consumers worldwide," the official added.

In 2024, domestic toy retail sales reached 97.85 billion yuan, up 25.5 percent from 2020. Toy exports totaled $39.87 billion, up 19.1 percent from 2020, with more than 40 percent of shipments sent to the US and the EU, according to the MIIT.

Advances in new materials, manufacturing techniques, and technologies have dramatically expanded the diversity of Chinese toy offerings, He said. 

Among new offerings, China's rapid development in artificial intelligence (AI) has fueled the growth of related toys. The domestic market scale for AI toys hit about 24.6 billion yuan in 2024, and that's projected to grow to 29 billion yuan in 2025, according to the MIIT.

"The integration of AI and large models has breathed new life into toys, enhancing interactive experiences through features such as conversation, personalization, character development, and memory retention," said He.

These AI-driven products have won over young users, carving out a dynamic new competitive arena, the official said.

The MIIT plans to collaborate closely with other agencies to accelerate high-quality development in the AI toy industry, through policy support, product innovation and responsible governance.

"We will encourage the pairing of toy companies with AI firms, while embedding Chinese cultural elements into blockbuster designs," said He, adding that the MIIT will work with regulators to assess risks, strengthen data and cybersecurity protections, and establish timely standards that safeguard the quality, safety, and privacy of AI toys.

Global Times