I. Market Scale Continues to Expand, the "Emotional Economy" Ignites the New AI Plush Track

According to the Ministry of Industry and Information Technology, China's AI toy market reached RMB 29 billion in 2025, a year the industry has dubbed "Year One of AI Toys"; the market is expected to reach RMB 34.2 billion in 2026. The China Business Industry Research Institute forecasts that China's AI toy market will grow to RMB 85 billion by 2030. Meanwhile, a 2026 Statista report shows the global AI toy market has reached $31.2 billion, with the Chinese market alone contributing more than 36% of that share.

Growth momentum is especially strong in the AI plush toy segment. Global sales of AI smart plush toys reached approximately $1.10 billion in 2025, and are expected to reach $3.963 billion by 2032. Take Dongguan's Chashan Town as an example — a major hub for premium plush toy manufacturing nationwide — where local companies continue to push into the AI plush toy track. Dongguan Junou Toys Co., Ltd.'s self-developed AI smart plush toy has already advanced to version 3.0, capable of daily conversation and providing emotional value, while also supporting interactive touch feedback. The company achieved production of over 200,000 units and RMB 50 million in output value in just the first half of this year, matching its entire output for all of 2025.

The Yangzhou production base is also accelerating its transformation. Known as "China's Capital of Plush Toy Gifts," Yangzhou's plush toy industry output has surpassed RMB 30 billion, accounting for more than 30% of the domestic market and nearly 20% of the global market. Local companies are shifting from "filling with cotton" to "filling with computing power" — smart dolls equipped with AI large models are moving from the drawing board onto production lines.

II. Technology Routes Are Maturing, from "Able to Talk" to "Having Memory"

AI smart plush toys currently fall into three main categories based on differences in core technology routes and interaction methods: large-model voice conversation type, multimodal perception and interaction type, and customized AI companionship type. Voice large models, on-device AI chips, and multimodal perception technology have significantly lowered the cost of interaction, upgrading plush toys from "playing preset audio" to intelligent agents capable of "continuous conversation, long-term memory, and personalized responses for each user."

In July 2026, at the Global Digital Economy Conference held in Beijing, Yangzhou showcased 18 AI smart plush toys together, spanning four series: cultural tourism IP, sports co-branding, parent-child early education, and original trendy toys. The "Xiaodoubao" and "Xiaozhutun" characters exhibited by Yangzhou Big Data Group draw deeply on Yangzhou's distinctive city resources, embedding the culture of the "World Capital of Gastronomy" and Zhuyu Bay tourism content into the AI knowledge base, supporting voice-guided tours and cultural Q&A.

III. Capital Is Rushing In, Supply Chain Collaboration Is Upgrading

The industry's momentum has also drawn strong attention from capital. According to incomplete statistics from Huaan Securities, there have been at least 13 investment and financing events in China's domestic AI toy market since the start of 2026, with more than 50 financing events accumulated across the track over the past two years, drawing in institutions including Ant Group, Shenzhen Capital Group, and Huatai Zijin, among others.

At the supply chain level, upstream-downstream collaboration is accelerating. Yangzhou has held an "AI + Plush Toys" industry matchmaking conference, bringing together AI innovation institutions such as the Artificial Intelligence Research Institute of the China Academy of Information and Communications Technology, JD Technology, and Lynxi Technology, to connect supply and demand around smart doll R&D, human-machine interaction, and IP co-creation. Yangzhou's cross-border e-commerce industrial park for plush toys is set to complete acceptance inspection by year-end, with more than a hundred companies expected to launch foreign trade AI agents by then. The industry's low-price internal competition is easing.

IV. Embracing the AI Wave: Bestjoy's Exploration and Positioning

As a professional factory deeply rooted in plush toy manufacturing, Bestjoy has always closely followed the industry's frontier trends. Facing this historic opportunity presented by "AI + Plush," we are actively positioning ourselves in the R&D and production of smart plush toys:

Customized AI Plush Solutions

We have full-chain production capabilities covering original design, sampling, and mass production, and can customize smart plush toys equipped with AI voice modules and touch feedback systems according to customer needs. Whether it's an IP character, a brand mascot, or an original trendy toy design, we can perfectly blend a soft, cute appearance with smart interaction.

Strict Safety and Quality Assurance

All AI plush products use non-toxic, environmentally friendly fabrics, and electronic modules undergo strict safety testing and certification, ensuring the absolute safety of components such as batteries, cables, and chips in scenarios involving children's use. Reinforced stitching and anti-detachment component design allow intelligence and safety to go hand in hand.

Flexible Production and Delivery

We offer one-stop OEM/ODM services, supporting everything from small-batch trial production to large-scale mass production, helping customers respond quickly to market changes. At the same time, we are actively exploring digital manufacturing tools such as AI-assisted design and smart production scheduling, continuously improving manufacturing efficiency and product quality.

From "filling with cotton" to "filling with computing power," the wave of intelligent transformation in plush toys is only just beginning. Bestjoy is ready to join hands with partners worldwide, combining solid manufacturing expertise with an open, innovative spirit, to seize together the golden opportunity in the development of the AI plush toy industry.