Japan’s 2×4 Market Seeing Rising Competition from Domestic Lumber
At a glance
Japanese domestic 2×4 production rose 33.9% in 2025 to 112,610 m³, while more housing companies are specifying domestic dimension lumber. For Canadian exporters, the message is clear: competition is no longer only imported lumber from Europe or Russia. Domestic Japanese producers are also gaining ground, especially in Sugi-based 2×4 applications.
Japan’s domestic 2×4 segment is still relatively small compared with the country’s total structural wood market, but the latest survey results show a market moving decisively in favour of local supply. That matters for Canadian producers because Japan remains one of the world’s most important premium wood markets, and 2×4 construction has historically been a core outlet for Canadian dimension lumber.
The Association to Promote the Use of Domestic Wood in 2×4 Construction recently released the results of its annual survey of domestic 2×4 production and usage trends. Conducted in July and August 2025 with 113 respondents including sawmills, panel plants, and home builders, the survey points to a notable increase in both production and adoption of Japanese domestic dimension lumber.
The survey results indicate a significant increase in Japanese domestic dimension lumber production and consumption. Total production increased 33.9% from 84,048m3 in 2024 to 112,610m3 in 2025. By species breakdown Sugi (Japanese Cedar) increased from 82.8% in 2024 to 91.2% in 2025. Slight declines were evident in Todomatsu (Sakhalin Fir) and Hinoki (Cypress). By size 2×4 maintained the dominant share, but production in wider widths is gradually increasing. In 2024 the ratio was 69.7% 2×4 and 28.3% 2×6. The ratio changed to 65.8% 2×4 and 29.5% (balance wides) in 2025. The change is thought to be partially as a result of building code changes leading to increased use of thicker wall cavities to accommodate added insulation materials. Sawn dimension lumber represented 63.9% and finger jointed lumber represented 36.1% of total production.
The number of housing companies which specify the use of Japanese domestic dimension lumber increased from 23 in 2024 to 28 in 2025. When asked why they switched to domestic dimension lumber use, survey participants most frequently cite stable pricing, the use of domestic wood conforms with sustainable development goals SDGs and to contribute the revitalization of the local forest industry.
Image: Domestic 2×4 lumber by shigawood. (Source: https://www.shigawood.com/panel/biwakozai/)