AI Marketplace: How AI Robot-Pets and Kidults Are Shaping the Future

The 2025 International Tokyo Toy Show, held at Tokyo’s Big Sight exhibition center, featured over 200 vendor companies displaying more than 30,000 toys across a four-day event. 

According to the report by Next Move Strategy Consulting, the global AI Marketplace Market size is predicted to reach USD 30.26 billion by 2030 with a CAGR of 31.4% from 2025-2030.

The show was strategically divided into two days for industry professionals and two days for the public, unveiled exciting trends in the toy industry, with AI-powered companion robots and the rise of “kidults” stealing the spotlight. These developments signal a transformative shift in the AI marketplace, particularly in consumer-facing applications. 

The Rise of AI Companion Robot-Pets

The toy industry is no longer just for kids. At the 2025 Tokyo Toy Show, Sharp Corporation introduced its “Poketomo” (pocket friend), a compact AI-powered robot-pet designed to fit in a pocket or purse. Priced at 39,600 yen (approximately $269), Poketomo won an innovation award for its ability to engage in personalized conversations by leveraging chat records, location data, and onboard camera images.

• What Makes Poketomo Unique?
  • Compact design for portability.
  • AI-driven personalization, remembering user details for tailored interactions.
  • Scheduled for release in Japan in November 2025.

This innovation reflects a growing demand for emotionally intelligent, interactive devices that blend entertainment with companionship. The AI marketplace is seeing a surge in such applications, as consumers seek products that combine technology with emotional engagement.

AI companion robot-pets like Poketomo are redefining consumer expectations, pushing the AI marketplace toward more personalized, portable, and interactive solutions.

The Kidult Phenomenon: Adults Driving Toy Market Growth

Despite Japan’s declining national birthrate, the toy industry has found a powerful growth driver in an unexpected demographic.The term “kidult”—a blend of “kid” and “adult”—has become a cornerstone of the toy industry’s growth. Akihiro Sato of the Japan Toy Association noted that adults with a passion for playful, high-quality toys are significantly boosting revenues. This trend is not just nostalgic; it’s a powerful market force.

• Key Drivers of Kidult Demand:
  • Nostalgia: Adults are drawn to reissues of childhood favorites. As one attendee noted, a Takara Tomy toy car purchased in childhood still works perfectly after nearly 20 years, demonstrating the lasting quality that appeals to adult collectors.
  • Collectibility: High-tech and premium toys appeal to adults with disposable income.
  • Innovation: AI and interactive technologies enhance the appeal of toys for all ages.

The kidult segment contributed to an 8% revenue increase in Japan’s toy industry in fiscal 2024 compared to fiscal 2023, with high-tech interactive toys and robots leading with a 40% annual revenue jump.

The kidult trend is expanding the AI marketplace by driving demand for sophisticated, AI-enhanced toys that cater to adult collectors and enthusiasts.

Impact on the AI Marketplace

The success of AI robot-pets and kidult-focused products at the Tokyo Toy Show reflects a pivotal evolution in the AI marketplace, extending beyond the toy industry to influence consumer product innovation at large. These trends demonstrate growing consumer acceptance of AI-driven solutions that prioritize personalization and interactivity, setting the stage for broader applications. For example, the conversational and adaptive capabilities of Poketomo could inspire similar AI integrations in sectors like healthcare, where companion robots could provide emotional support for the elderly, or in education, where interactive tools could enhance learning. 

The kidult trend further highlights a lucrative demographic willing to invest in high-tech, emotionally engaging products. These developments position toys as a testing ground for AI technologies, with successful innovations likely to influence product strategies in adjacent markets, such as smart home devices and wearable technology.

Challenges: Tariffs and Global Supply Chains

The Tokyo Toy Show also highlighted challenges that could impact the AI marketplace. Akihiro Sato explained that 80% of Japanese toy manufacturers’ products are produced in China, and new U.S. tariffs settled at 15% after negotiations. However, since 80% of Japanese toy manufacturers’ products are actually produced in China, Chinese tariffs would also apply when selling to the U.S. market, potentially resulting in additional costs beyond the 15% rate, which could increase prices for products sold in the U.S. market.

• Potential Impacts:
  • Higher costs for AI-integrated toys like Poketomo could reduce affordability.
  • Manufacturers may need to rethink supply chain or absorb costs, potentially slowing innovation.
  • Consumer demand in key markets like the U.S. could be affected by price hikes.

Global supply chain dynamics and tariffs pose risks to the affordability and scalability of AI-driven products in the toy industry and beyond.

Balancing Tradition and Innovation

While AI and high-tech toys dominated the 2025 Tokyo Toy Show, traditional wooden toys, such as those from EWA Eco-Wood-Art, emphasized the value of tactile experiences. Vladislav Krit of EWA Eco-Wood-Art in Pinsk, Belarus, highlighted the importance of human touch in play, explaining that their wooden mechanical construction kits require assembly and emphasize tactile feelings, suggesting that the AI marketplace must balance cutting-edge technology with sensory engagement.

• Why It Matters:
  • Consumers value products that combine emotional resonance with technological innovation.
  • Wooden toys appeal to eco-conscious buyers, a growing segment in the toy market.
  • AI developers can learn from this balance, ensuring products remain relatable and user-friendly.

The AI marketplace can enhance its appeal by integrating tactile and emotional elements, ensuring technology feels human-centric.

Next Steps: Capitalizing on AI Marketplace Trends

To leverage the insights from the 2025 Tokyo Toy Show, businesses and innovators in the AI marketplace can take the following actionable steps:

• Invest in Personalization: Develop AI products that prioritize user-specific interactions, like Poketomo’s ability to remember personal details, to meet growing consumer demand for tailored experiences.
• Target the Kidult Demographic: Create premium, collectible AI-driven products that appeal to adults, tapping into nostalgia and discretionary spending.
• Mitigate Supply Chain Risks: Explore localized production or diversified supply chains to reduce the impact of tariffs and ensure cost-effective scaling.
• Balance Tech and Touch: Incorporate sensory elements into AI products to enhance user engagement and appeal to eco-conscious consumers.

Final Thoughts

The 2025 International Tokyo Toy Show highlights the transformative potential of AI in consumer markets. By focusing on personalization, targeting new demographics, and balancing innovation with human-centric design, businesses can position themselves at the forefront of the evolving AI marketplace.

About the Author

Nitrishna Sonowal is a skilled SEO Executive and Content Writer with over 3 years of experience in the digital marketing industry. With a deep understanding of the ever-evolving digital landscape, she blends analytical insights with creative storytelling to deliver impactful digital solutions. She creates content that resonates with both clients and readers alike. Outside of work, she enjoys dancing, baking, and travelling to new places. The author can be reach at info@nextmsc.com.