Non coniferous wood fuel market in Japan

Earlier Report Observations

Between 2018 and 2020, the market for non-coniferous wood fuel in Japan experienced shifts in both domestic production and import volumes. The implementation of the Clean Wood Act in 2018 established a framework for stable domestic supply and quality standardization for wood biomass fuel, supporting a rise in production. However, in 2020, COVID‑19 pandemic disruptions to international logistics and soaring prices for imported timber reduced import volumes while increasing demand for domestic non-coniferous fuel, leading to a temporary contraction in overall market size.

From 2021 onward, the market resumed growth, reaching 25 600 thousand m³ by 2023. The revised Wood Use Promotion Law, enforced in October 2021, legally mandated the use of wood in public and private buildings, boosting demand for wood-based fuel. Furthermore, 2022 amendments to the FIT/FIP scheme that phased out support for imported biomass after 2026 accelerated the shift toward domestic non-coniferous supply, stimulating consistent production increases.

Production non coniferous wood fuel in Japan

In kind, 2018-2021, K m³

Top producers of non coniferous wood fuel, 2018-2021

World map of production of non coniferous wood fuel, 2018-2021

Japan's production of non-coniferous wood fuel has increased for the third consecutive year. In 2021, Japan produced 9 348 K m³ of non-coniferous wood fuel, marking a gradual gain of 4.9% compared to 2020. Over the period from 2018 to 2021, production rose by 49.6%, with a compound annual growth rate (CAGR) of 14.4%.

Annual dynamics of production in Japan in kind, 2018-2021, K m³

Exports non coniferous wood fuel from Japan

Exports in kind, K m³

In 2021, Japan's export volume of non-coniferous wood fuel reached 1 K m³, showing a modest rise of 5.2% compared to 2020. Between 2018 and 2021, exports decreased by 25.2%, which equates to an annualized rate of decline of 9.2%. The maximum value was recorded in 2019 at 1 K m³, while the minimum was in 2020 at 0.5 K m³. The largest increase occurred in 2019 at 10.2%, and the largest decline was in 2020 at 35.5%.

Annual dynamics of product's exports from Japan in kind, 2018-2021, K m³

From 2018 to 2021, the Maldives was the dominant destination for Japan's exports of non-coniferous wood fuel in kind, accounting for 72.9% of total flows. The remaining share was distributed among several smaller markets.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Japan in kind, 2018-2021

Exports in value, M $ US

After a two-year rise, Japan's exports of non-coniferous wood fuel in value terms declined. In 2021, exports amounted to 0.1 M $ US, representing a significant decrease of 20.9% year-over-year. Over the period from 2018 to 2021, exports increased by 16.1%, with a compound annual growth rate (CAGR) of 5.1%. The maximum value was recorded in 2020 at 0.2 M $ US, and the largest increase occurred in 2019 at 44.5%.

Annual dynamics of product's exports from Japan in value, 2018-2021, M $ US

Between 2018 and 2021, Thailand, Maldives, and Indonesia formed the main cluster of markets for Japan's exports of non-coniferous wood fuel in value terms. Thailand accounted for 47.4% of exports, Maldives for 25.8%, and Indonesia for 7.9%, together representing 81.1% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Japan in value, 2018-2021

Imports non coniferous wood fuel to Japan

Imports in kind, K m³

After a two-year reduction, Japan's imports of non-coniferous wood fuel in kind increased. In 2021, imports reached 14 490 K m³, up by 14.6% compared to the previous year. Over the period from 2018 to 2021, imports decreased by 12.3%, with a compound annual growth rate (CAGR) of -4.3%. The minimum value was recorded in 2020 at 12 641 K m³, and the largest decline occurred in 2020 at 23.1%.

Annual dynamics of product's imports to Japan in kind, 2018-2021, K m³

Throughout 2018 to 2021, Vietnam, Australia, and Chile formed the core group of markets for Japan's imports of non-coniferous wood fuel in kind. Vietnam accounted for 36.9% of imports, Australia for 16.6%, and Chile for 15.1%, together representing 68.6% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Japan in kind, 2018-2021

Imports in value, M $ US

In 2021, Japan imported a total of 1 677 M $ US of non-coniferous wood fuel, corresponding to an improvement of 11.0% over the past year. Between 2018 and 2021, imports decreased by 13.4%, equating to an annualized rate of decline of 4.7%. The maximum value was recorded in 2019 at 2 076 M $ US, while the minimum was in 2020 at 1 511 M $ US. The largest decline occurred in 2020 at 27.2%.

Annual dynamics of product's imports to Japan in value, 2018-2021, M $ US

From 2018 to 2021, Vietnam, Australia, and Chile were the largest suppliers of non-coniferous wood fuel to Japan in value terms. Vietnam accounted for 31.8% of imports, Australia for 19.0%, and Chile for 17.2%, together forming 68.0% of total imports in value terms.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Japan in value, 2018-2021