In a striking economic paradox, Japan’s toy market is posting record growth despite the country’s declining birthrate. The Tokyo International Toy Show reveals the secret to this success: the rise of AI-powered robotic pets and the “kidult” phenomenon — adults buying toys for themselves.
Article contents:
- Introduction: The Japanese toy market paradox
- The rise of “kidults”: When grown-ups buy toys
- Robotic pets: A smart companion in your pocket
- Show star: Sharp’s “Poketomo”
- The nostalgia factor: Reviving classics
- Traditional toys are still holding strong
- Economic outlook: The impact of global tariffs
- Conclusion: A market adapting and growing smartly
Introduction: The Japanese toy market paradox
Despite the demographic challenge of a falling birthrate, Japan’s toy market is experiencing unexpected prosperity. The country’s toy makers saw revenues increase by nearly 8% in the last fiscal year, posting record profits. The 2025 Tokyo International Toy Show, which attracted tens of thousands of visitors, revealed the main drivers behind this growth: advanced technology, nostalgia, and a new, powerful demographic group.
The rise of “kidults”: When grown-ups buy toys
Akihiro Sato of the Japan Toy Association says that adults with larger wallets are, in part, driving these profits. He explains: “Over the past few years, we have been using the term ‘kidult,’ which is a blend of the words ‘kid’ and ‘adult.’ Simply put, this means adults with the hearts of children collecting toys that they can touch and play with.”
Robotic pets: A smart companion in your pocket
High-tech interactive toys and robotics jumped more than 40% in annual revenue for the sector, leading all other categories. Among toys specifically targeting “kidult” customers are so-called AI-powered robotic companion pets.
Show star: Sharp’s “Poketomo”
The most prominent example of this trend was Sharp’s “Poketomo,” which means “pocket friend.” This small robot can be slipped into a large jacket pocket or handbag, and Sharp emphasizes that it can talk with its owner and remember personal details. To power its AI for personalized conversations, the robot stores chat logs, location data, and onboard camera photos. The product won the innovation award at this year’s show and is scheduled to launch in Japan in November for the equivalent of about $269.
The nostalgia factor: Reviving classics
“Kidult” customers are also helping boost revenue through demand for reissues of past hit toys. The Tokyo show gave visitors a chance to see the latest editions of favorite childhood toys, such as Takara Tomy mini cars, sparking nostalgia and driving sales.
Traditional toys are still holding strong
While plastic and tech toys dominated the show, some vendors continued to offer traditional wooden products. Vladislav Kryt of EWA Eco-Wood-Art emphasizes the essential nature of the human touch in play. He says: “It’s about tactile emotions, it’s about how you touch it and how you assemble it. With wood or anything else, you need to touch it before you make a decision to start this thing.”
Economic outlook: The impact of global tariffs
Despite the upbeat atmosphere, there is an underlying concern about trade tariffs. Sato explains that about 80% of Japanese toy manufacturers’ products are produced in China. When these products are sold from China to the United States, Chinese tariffs are now being added, meaning some manufacturers are likely to see price hikes that could impact Christmas sales.
Conclusion: A market adapting and growing smartly
The Tokyo Toy Show demonstrates that the toy market is not just an industry for children. By embracing advanced technology like artificial intelligence and catering to the desires of the nostalgic “kidult” generation, Japan’s toy industry has proven its remarkable ability to adapt and grow in the face of demographic challenges. It is a success story showing how innovation and nostalgia can come together to create a thriving market.
