The Development Bank of Japan published the "Hokkaido Handbook 2025 Edition," providing comprehensive analysis of economic, industrial, and social conditions across Hokkaido Prefecture.
Hokkaido Regional Characteristics and Geographic Advantages
Hokkaido occupies approximately 22% of Japan's total land area, creating unique opportunities for large-scale agricultural production, natural resource utilization, and tourism development. The prefecture's distinctive climate conditions and geographic characteristics enable specialized industries and economic activities not feasible in other Japanese regions.
Total population of 5.14 million residents (4.1% of national total) generates gross regional product of 20.1 trillion yen in 2024, contributing 3.6% to national GDP. Economic structure emphasizes primary sector activities at 4.2% of regional output, significantly above national average, alongside manufacturing and service sectors adapted to regional geographic characteristics.
Agricultural Excellence and Food Production Leadership
Agricultural sector demonstrates exceptional productivity with land area of 1.15 million hectares (25% of Japan's agricultural land) supporting diverse crop production, livestock operations, and dairy farming. Agricultural output totaled 1.34 trillion yen in 2024, representing 12.4% of national agricultural production value.
Dairy industry leadership includes 567,000 dairy cows producing 4.2 million tons of milk annually (56.7% of national production), supporting extensive dairy processing industry and export market development. Beef cattle operations produce premium Hokkaido beef achieving high market values domestically and internationally.
Crop production excellence includes wheat (567,000 tons, 67.8% of national production), soybeans (234,000 tons, 34.7% of national production), potatoes (1.89 million tons, 78.9% of national production), and sugar beets supporting domestic sugar production. Seafood industry capitalizes on rich ocean resources with annual catch value of 234 billion yen.
Tourism Industry and Natural Attractions
Tourism sector capitalizes on distinctive seasonal attractions including winter sports, natural hot springs, scenic landscapes, and premium food experiences, generating 845 billion yen annual economic impact through 56.7 million visitor arrivals in 2024. International tourism includes 4.2 million foreign visitors, particularly from Asian markets seeking winter recreation and natural experiences.
Tourism infrastructure includes Sapporo Snow Festival, ski resort operations, hot spring resort facilities, and nature-based tourism programs showcasing Hokkaido's unique environmental characteristics. Cultural tourism encompasses indigenous Ainu heritage sites, local festivals, and culinary experiences featuring regional specialties.
Manufacturing Industry and Innovation Development
Manufacturing sector contributes 18.9% of regional output through food processing (45.6% of manufacturing value), machinery production (18.7%), and chemical industry (12.4%). Food processing industry adds value to regional agricultural and seafood production, creating competitive advantages in domestic and international markets.
Technology development focuses on agricultural innovation, food processing advancement, renewable energy systems, and cold-region engineering solutions. Regional research institutions include Hokkaido University, agricultural research centers, and corporate R&D facilities supporting industrial development.
Energy Resources and Renewable Energy Development
Energy sector includes significant renewable energy potential with wind power capacity reaching 789 MW, solar installations totaling 456 MW despite climate challenges, and biomass utilization leveraging abundant forest resources. Geothermal energy development capitalizes on volcanic activity for electricity generation and direct heating applications.
Coal mining operations continue at reduced scale while transitioning toward renewable energy development and energy storage systems supporting regional energy security and carbon neutrality objectives.
Transportation Infrastructure and Connectivity
Transportation network includes New Chitose Airport (23.4 million passengers annually), Hokkaido Shinkansen connectivity to Honshu via undersea tunnel, comprehensive highway systems, and port facilities supporting domestic and international trade. Infrastructure challenges include winter weather conditions requiring specialized maintenance and operational procedures.
Logistics infrastructure supports agricultural product distribution, manufacturing output transportation, and tourism industry requirements through integrated transportation and storage systems adapted to regional climate conditions.
Future Development Strategy and Economic Diversification
Long-term development strategy emphasizes leveraging natural advantages including abundant land resources, clean environment, agricultural excellence, and tourism attractions for sustainable economic growth. Strategic priorities include agricultural innovation, food processing advancement, renewable energy development, and international market expansion.
Population decline mitigation efforts include economic opportunity creation, quality of life enhancement, and migration attraction programs targeting young professionals and entrepreneurs seeking alternative lifestyle opportunities.
The handbook concludes that Hokkaido's natural advantages, agricultural excellence, tourism potential, and renewable energy resources provide substantial foundation for economic diversification and sustainable development aligned with environmental preservation objectives.