Market Overview

BC and Canada have a long-standing presence in the Japanese market and are widely recognized as leading players in supplying wood products to Japan’s residential construction sector.

While Japan’s aging population has led to a decline in single-family housing starts, government policies encouraging wood use in hybrid, multi-family/multi-storey, and non-residential construction have opened doors for BC wood products within these segments.

The growing demand for wood pellets and the increasing use of value-added products further enhance the market potential for BC in Japan.

Photo: This is Me | Credit: Fuji Realty Co., Ltd.

Key Stats

0

+
wood housing starts in 2025
$

0

million in wood pellet exports to Japan (2025)

0

nd
largest market for BC lumber (by value)

Why Japan?

  • Large, high-value market for BC
  • Strong Canadian brand for more than 50 years
  • Growing opportunities in non-residential sector
  • Sophisticated market with demand for coastal species, S-P-F, value-added and wood pellets
Photo: Construction of Tokyo University of the Arts International Exchange Center | Photo: Canada Wood

Market Priorities

  • Encourage wood use through engaging policymakers around codes and standards
  • Increase market share of single and multi-family residential construction
  • Develop the non-residential construction segment
  • Target niche markets for the value-added sector, particularly in resort, non-residential and reform sectors
  • Continue to build upon Canada’s growing market-share within the wood pellets sector
Photo credit: Canada Wood Japan

Strategic Approach

Since 2003, the Canada Wood Group has been leading market development programming with support from FII. Efforts are focused on overcoming barriers to wood use, increasing capacity in wood construction and design, and promoting the use of wood building systems in targeted sectors. Support for BC’s value-added sector is encouraged through in-market promotions and continued work on codes and standards to achieve acceptance of new building solutions.

Photo: Nursing Home Nakano Nukumori no Sato | Credit: MHS Planners, Architects & Engineers Ltd.

Featured Projects

Representatives from Canadian and Japanese organizations seated at a conference table holding signed documents, with Canadian and Japanese flags displayed behind them during a memorandum of understanding signing ceremony.

Trade mission deepens trust and expands opportunities

B.C.’s largest-ever forestry trade mission to Japan in November 2025 demonstrated how co-ordinated government and industry outreach can transform long-standing relationships into valuable market opportunities.

Led by the B.C. Minister of Forests, Ravi Parmar, the mission was organized by Canada Wood Japan in collaboration with FII, and included provincial government representatives and a broad delegation of B.C. forest industry representatives. BC Wood led a parallel industry mission, and the Wood Pellet Association of Canada hosted a dedicated wood pellet customer event, further strengthening sector-wide outreach. More than 10 percent of the delegates represented First Nations or First Nations-owned forestry businesses, reflecting the shared commitment to growing these markets.

The mission targeted high-priority growth segments in Japan—mid-rise, non-residential and engineered wood applications—which laid the groundwork for expanded wood use and future sales.

The delegation advanced B.C.’s position by engaging with influential decision-makers in government ministries and industry associations, as well as with builders, designers, developers and supply chain partners. At the Japan Market Strategy Review, priorities to accelerate mid-rise and non-residential wood construction were defined, and joint technical initiatives to enable broader wood use were identified. Site visits showcased how B.C. wood is advancing low-carbon, resilient construction methods.

These efforts strengthened relationships, reinforced shared commitments to environmental and sustainable development objectives, and expanded opportunities for B.C.’s primary and value-added wood sectors in a market that remains central to long-term diversification and export growth.

Photo: Canada Wood

Three visitors wearing branded caps stand beside a wood-framed structural wall assembly inside a manufacturing facility, with engineered wood components and production equipment visible in the background.

Narrow shear wall outperforms seismic targets

To address the growing pressures of building housing on smaller, narrower urban lots and the need to ensure that Japan’s Building Standard Law seismic performance requirements are met, Canada Wood Japan has developed and successfully tested an innovative narrow shear wall measuring 300 mm wide—one-third the width of the typical 910 mm shear wall. Despite its compact width, it outperforms the seismic requirements of Japan’s building code. This makes it one of the narrowest high-performance shear walls under development for residential construction—and demonstrates that a system built with Canadian lumber and oriented strand board (OSB) can satisfy some of the world’s strictest building codes. The thinner size also increases the available interior space and layout options for new builds.

Photo: Canada Wood

“This is Me” shows wood construction can deal with safety issues

Two technical issues—seismic performance and fire-resistance—have tended to hold back larger wood building projects in Japan. A new mid-rise commercial building in Japan shows that both issues can be dealt with successfully.

“This is Me” is a five-storey commercial building constructed entirely of wood. To deal with seismic performance, the building uses a high-performance Midply Wood Shear Wall System made from Canadian S-P-F lumber and oriented strand board (OSB). The approach was developed in Vancouver by FPInnovations. Canada Wood worked with Japanese officials to have the engineered building assembly certified under Japan’s Building Standards Law. With this certification, the Canadian Midply Wall System has now been used in more than 10,000 projects across Japan.

To achieve fire safety approvals, the building uses assemblies developed in partnership with the Japan 2×4 Home Builders Association. The approach was extensively tested by authorities before receiving fireproof approvals. Without these fireproof approvals, the project could not have been built.

The 592-square-metre building makes extensive use of Canadian 2×4 and 2×6 S-P-F dimension lumber.

With the resolution of the seismic and fireproofing issues, “This is Me” sends the powerful message “This is possible” to Japanese developers regarding wood use for mid-rise projects.

Photo: Fuji Realty Co., Ltd.

Exterior of a black wood-clad building at the T-home KEI Hotel in Tokyo, framed by landscaped trees and shrubs.

Expanding wood’s role in Japan’s hospitality sector

Canada Wood Japan is leveraging a surge in tourism-driven construction demand to position B.C. wood products and expertise as a top choice for low- to mid-rise hotel development.

A decade of significant tourism growth—rising from 13.4 million inbound visitors in 2014 to 42.7 million in 2025, with government targets of 60 million by 2030—has created an acute accommodation shortage. Current projections suggest a deficit of 300,000 to 400,000 rooms nationwide. Wood construction offers clear advantages in speed, design flexibility, carbon performance and seismic resilience; however, it is underused in hotel and hospitality buildings.

To capitalize on the current surge in hospitality construction, Canada Wood Japan is engaging directly with developers, builders, architects and construction firms to position wood as an alternative to steel and concrete and build confidence that it is a practical, scalable solution.
This engagement combines targeted outreach, technical discussions and project-level collaboration. A central element is the development of a suite of non-residential 2×4 case studies, including hospitality projects, that demonstrate how light-frame and hybrid wood systems can meet Japan’s structural, fire and durability requirements.

T-home KEI Hotel

The T-home KEI Hotel in Tokyo integrates traditional Japanese design with modern wood construction, consisting of six two-storey buildings built entirely of wood, using 419 m³ of timber, including 242 m³ of S-P-F dimension lumber. Constructed by Mitsui Home, this project illustrates how the long-term collaboration between Canada Wood and Japanese industry partners results in tangible outcomes and opportunities for Canadian forest product exporters.

Photo: Canada Wood