AI toy craze: China’s e-commerce sees 1,600% jump in smart companion sales

The AI market in China has reached a fever pitch during the early months of 2026. AI companions have taken center stage as the industry sees a staggering 1,600% year-on-year increase in sales.

This marks a significant move with Chinese enterprises accounting for over 80% of the 60 participating companies. These forms focus primarily on devices designed to learn user habits and provide a long-term emotional connection.

The world’s first AI pocket pet, known as “Sweekar” is a notable device that actually grows physically over time. Developed by the Shenzhen startup Takway.AI, this palm-sized companion undergoes distinct physical life stages; it even feels warm to the touch and appears to breathe, creating a more realistic sense of championship.

In this connection, Takway CEO Irving Gao said, “This physical growth unfolds in sync with the AI champion’s emotional development.” It is expected that the product will launch at between $150 and $200.

According to Jiang Han, a senior analyst at Pangoal, AI-powered toys have clear potential as a new driver of consumption. The market for emotional AI is thriving, as it fosters a deep connection with users ranging from children to young adults and has become a central pillar of the growing tech industry. A prime example is the soft toy “Fuzozo” from Shanghai’s Robopoet; designed for younger audiences as it emerged as one of the top sellers during the Double 11 shopping event.

AI toys: Shifting the Chinese consumer landscape

The 1,600% surge in AI toys has become a key factor in reshaping China’s consumer landscape. These devices offer a much-needed sense of digital comfort and support, yet the boom is also raising crucial questions regarding data privacy and ethics. In line with this rapid expansion, the primary challenge for regulators will be to continue balancing technological innovation with consumer safety.