Wood fuel market in Japan

Earlier Report Observations

Japan's wood fuel market volume expanded from 27.3 million cubic meters in 2018 to 37.8 million cubic meters in 2023. The increase was primarily driven by renewable energy policies, notably the feed-in tariff (FIT) and feed-in premium (FIP) schemes, which encouraged the use of wood biomass for power generation. These mechanisms supported both domestic production and imports, leading to sustained market growth over the period.

Market growth in 2018 and 2019 was fueled by a 15% rise in domestic consumption and an 11% increase in production, as wood biomass energy use expanded. The COVID‑19 pandemic in 2020 caused a temporary 5.4% contraction due to reduced industrial activity. However, the market rebounded strongly in 2021 with a 16.5% surge, supported by the continuation of FIT and the announcement of the FIP scheme launching in 2022. The introduction of FIP allowed larger biomass power plants (above 10 000 kW) to integrate into the electricity market as competitive sources, further boosting demand. Growth continued in 2023, with the market reaching 37.8 million cubic meters, an 8.8% increase from 2022.

In 2022, industry participants highlighted risks such as fuel costs and international biomass price fluctuations after the eventual phase‑out of FIT and FIP support. Nonetheless, the market maintained its upward trajectory through 2023.

Production wood fuel in Japan

In kind, 2018-2021, K m³

Top producers of wood fuel, 2018-2021

World map of production of wood fuel, 2018-2021

Japan's wood fuel production has increased for the third consecutive year. In 2021, Japan produced 9,348 thousand cubic meters of wood fuel, marking a 4.9% rise compared to 2020. Over the period from 2018 to 2021, production grew by 49.6%, with an average annual growth rate of 14.4%.

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

Exports wood fuel from Japan

Exports in kind, K m³

The data shows irregular changes, indicating a volatile market environment. Wood fuel export volumes reached their lowest point in 2021 and peaked in 2020, with a 3.1-fold difference between these years. In 2021, Japan exported 5 thousand cubic meters of wood fuel, which is 67.6% lower than the previous year. The maximum value was recorded in 2020 at 17 thousand cubic meters, with the largest increase of 134.9% also occurring in that year.

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

From 2018 to 2021, the principal destinations for Japan's wood fuel exports in volume terms were China (42.8% of exports), Hong Kong (24.5% of exports), and South Korea (12.8% of exports). Together, these three markets accounted for 80.0% of total export flows.

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

Japan's wood fuel exports have declined for the second consecutive year. In 2021, exports amounted to 3 million US dollars, reflecting a sharp year-on-year decrease of 30.9%. Over the period from 2018 to 2021, exports fell by 33.8%, with an average annual decline of 12.8%. The maximum value was recorded in 2019 at 4 million US dollars, with the largest increase of 2.4% also occurring in that year.

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

From 2018 to 2021, Japan's wood fuel exports in value terms were distributed across a broad set of markets. The United Arab Emirates (20.1% of exports), China (18.7% of exports), and Saudi Arabia (9.7% of exports) together accounted for 48.5% of total export value, while many smaller destinations made up the remaining 51.5%.

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

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

Imports wood fuel to Japan

Imports in kind, K m³

In 2021, Japan imported 21,950 thousand cubic meters of wood fuel, representing a notable increase of 22.2% compared to the previous year. Over the period from 2018 to 2021, imports rose by 4.3%, with an average annual growth rate of 1.4%. The minimum value was recorded in 2020 at 17,963 thousand cubic meters, with the largest decline of 16.3% also occurring in that year.

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

From 2018 to 2021, the main sources for Japan's wood fuel imports in volume terms were Vietnam (34.7% of imports), Australia (16.2% of imports), and Chile (11.0% of imports). Together, these three countries accounted for 61.9% of total import 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

Japan imported a total of 2,653 million US dollars worth of wood fuel in 2021, corresponding to an increase of 19.6% compared to the previous year. The minimum value was recorded in 2020 at 2,219 million US dollars, while the maximum value was recorded in 2019 at 2,806 million US dollars. The largest decline of 20.9% occurred in 2020.

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

Over the period from 2018 to 2021, the main suppliers of wood fuel to Japan in value terms were Vietnam (29.3% of imports), Australia (17.5% of imports), and Chile (12.1% of imports). Together, these three countries comprised 58.9% of total import value.

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

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