Nearly all Japanese have converted to using seated toilets since 1977 when they first overtook the squatting versions. For future growth, Japan's largest toilet—maker Toto Ltd. is looking toward neighboring China.

"Just like Japan when I was growing up, not many people owned houses and apartments were small," said President Madoka Kitamura, 58, in an interview at Toto's main Tokyo showroom. "I believe China will follow the footsteps of developed countries as expansion in the housing market should follow as it exits from an exports-driven economy."

Toto, which has been making ceramic sitting-style toilets in Japan since 1917, is looking to China as sales in Japan stagnate amid a shrinking population. The Kitakyushu—based company introduced its first "washlet" in 1980 — a toilet which combines a heated seat with an electronically-controlled bidet.