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.

Together, FII and its partners are working to sustain BC’s market share in Japan by protecting the strong Canadian brand and expanding wood use beyond traditional segments.

Photo: Canada Japan Wood Conference at Tokyo International Forum | Credit: Canada Wood Japan

Key Stats

0

+
wood housing starts in 2024

0

nd
largest global market for BC’s value-added sector

0

nd
largest market for BC lumber

Why Japan?

  • Large, high-value market for BC
  • Strong Canadian brand for more than 40 years
  • Growing opportunities in non-residential sector
  • Sophisticated market with demand for coastal species, S-P-F, value-added and wood pellets
Photo: Donguri-Anne Public Library, Japan | Credit: Canada Wood Japan

Market Priorities

  • Encourage wood use through engaging policymaking 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, agriculture and reform sectors
  • Continue to build upon Canada’s growing market-share within the wood pellets sector
Photo: Canadian delegation to Japan, Seiwa Corporation 2×4 apartment site visit | 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: Ferichetamamura International Elementary School, Gunma prefecture | Credit: Gunma Felice Academy.

Featured Projects

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Japan trade mission highlights government-industry-First Nations partnership

Led by B.C. Forests Minister Bruce Ralston, a delegation of more than 40 high-level industry, government and First Nations representatives visited Tokyo in December 2023. The mission featured significant First Nations representation, led by Chief Lynda Price, Board Director with the B.C. Assembly of First Nations and Chief of the Ulkatcho First Nation.

The four-day program led more than 200 Japanese stakeholders through six site visits, three networking events, and one-on-one meetings.

A highlight of the mission was the 3rd Canada-Japan Wood Forum. With more than 180 participants, the forum allowed Japanese stakeholders to engage with B.C. representatives on the state of the B.C. forest sector and for industry personnel to explore opportunities with their Japanese counterparts for advanced wood use in non-residential, midrise, and mass timber construction. For the first time, a First Nations-focused panel informed Japanese stakeholders on the shared stewardship model that is emerging in B.C. and the stability it will bring to future B.C. lumber supplies.

Photos: Canada Wood

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Research helps 2x4 remain competitive

A recent market research report by Canada Wood indicates a shift in the construction sector, with post and beam construction gaining ground on prefabricated construction, particularly 2×4 systems. This trend can be partially attributed to the lumber price fluctuations witnessed in 2021-2022. The surge in North American lumber prices disproportionately impacted 2×4 construction, as the dimensional lumber (S-P-F) used in these systems saw a steeper price increase compared to domestic and European wood sources commonly utilized in post and beam structures. Additionally, post and beam designs may inherently require less lumber volume compared to 2×4 framed buildings, further contributing to cost advantages during periods of high lumber prices.

In response, Canada Wood partnered with the Japan 2×4 Home Builders Association to improve the quality and performance of prefabricated, standardized 2×4 floor, roof and wall assemblies. A review has conducted extensive testing to determine the optimal specifications for prefabrication and on-site assembly within strength and safety guidelines. In the next step, prefabricated components based on these specifications will go through on-site review. Tests will validate the most efficient assembly approaches. These results will then be documented in an updated manual that will serve as a unified standard for the Japanese 2×4 construction sector. Canada Wood plans to promote and distribute the manual to panel manufacturers, construction companies, structural engineers and builders to ensure the guidelines become standard practice in the sector.

Photo: Canada Wood

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“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.

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New wooden hospital serves as a prototype for the future

There are not many examples of hospitals being built with wood; however, Sakura Hospital in Chiba Prefecture is a prototype for wooden hospitals of the future.

Opened in November 2022, the facility is one of the largest hospitals in Japan to be designed and built using the 2×4 construction method and roof trusses. The three-storey hospital (33 beds) has a total floor area of 2,677 m² and incorporates over 400 m³ of structural wood products, including S-P-F dimension lumber and engineered wood joists and floor beams. The structure’s carbon storage equivalent is estimated at 474 tonnes of CO2.

The owner chose a 2×4 wood structure to create an environmentally conscious, safe and comfortable environment that accommodates the health needs of patients and staff, while offering innovative building solutions to tackle climate change.

Sakura Hospital is an excellent example of how Canada Wood/FII-funded programs and activities are fostering strong relationships with designers, engineers and contractors; partnerships that are essential to expanding opportunities for Canadian wood products beyond traditional markets.

Sakura Hospital | Photo: MITSUI HOME CO., LTD.