COCO INSERTING HERSELF INTO SEX TOY BIZ!

Coco -- Ice-T's wife -- is breaking into the toy business ... the sex toy business ... and TMZ has learned she's gunning to penetrate the marketplace by January.

Coco's rep tells TMZ ... Coco has teamed up with Cal Exotics, the world's largest sex toy company -- and plans to announce her own line of X-rated items in January.

We're told, "The toys will reflect Coco's personality and will include massagers, vibrators, and more!"

"The toys are for solo and couples play. Coco is involved with the entire process, from packaging to the promotional strategy."

She's like Santa Claus ... for adults.