The adult industry is looking to tap mainland China and Asian markets amid the downturn in the U. Sex Toys The expo's organizers said they plan to launch similar fairs later this year in other parts of China, which also churns out nearly three quarters of the world's Sex Toys. But the state-run China Daily newspaper said in a report last year that China produces 70 per cent of the world's Sex toys, making it the world's biggest producer. The industry, with more than 1,000 manufacturers, is worth about $2 billion annually, it said. It was his first visit to the annual show, attended by 80 companies from 13 countries. Many Chinese manufacturers realized they could tweak their product lines to make adult goods with minimal investment to reap bigger profits. It's not such a big step for underwear makers to make sexy lingerie and it's easy for companies making regular toys to switch to sex toys, he said. But slumping economies there are curtailing growth while competition and low profit margins are also making life hard for companies, said Lo. Adult product manufacturers have told him that in America and Europe, "it's a very tough time right now but in mainland China and Asia, it's good. It will be followed by shows in Fuzhou on China's eastern coast and Qingdao in the northeast. One company was selling coffee tables made of erotic statues. Several decades ago, men and women were strictly segregated in many parts of life and most people wore drab clothing that revealed little. Nowadays, shops selling sexual aids are common in many cities, and pornography, while officially banned, is commonly found on the Internet. Before when it was old money, it was shameful to show it," said Zach Goode, a sales manager at Electric Eel, which holds the global license to Hustler lingerie. They're not as repressed as the last generation was.