Instagram Hashtags in 2025 – Still Worth It for UK Businesses?

Hashtags have been part of Instagram for over a decade - but in 2025, the platform looks nothing like it did in 2012.
With Instagram now leaning heavily on AI recommendations, interest-based feeds, and keyword search, one question keeps coming up for UK businesses:

Do Instagram hashtags still matter?
The short answer: yes - but not in the way you think.

Hashtags won’t magically send your post viral anymore. They won’t fix weak content. And they’re no longer the primary way Instagram categorises posts.

But used correctly?
They still improve discoverability, help the algorithm understand your content, and support your long-term SEO on the platform.

Here’s exactly how hashtags work in 2025 - and how UK businesses should use them.

1. How Instagram’s Algorithm Has Changed (2025 Update)

Instagram’s biggest shift in recent years is simple:

👉 Interest-based discovery now matters more than hashtag-based discovery.

In fact, Instagram confirmed in 2024 that hashtags are no longer a ranking factor for feed distribution - instead, the algorithm relies on:

• user behaviour
• search history
• what content similar audiences engage with
• your video’s on-screen text and caption keywords

Where hashtags do still matter:

• categorisation
• relevancy
• discovery through hashtag pages
• increasing the chance of appearing in “Similar Reels”
• supporting Instagram SEO

According to Later Social (2024):

“Hashtags don’t boost reach directly, but posts with relevant hashtags see 15–30% more discovery due to improved categorisation.”

So no - hashtags aren’t dead.
But using 30 random hashtags absolutely is.

2. Do Hashtags Increase Reach in 2025?

Let’s look at real performance data.

The stats:

• Posts using 3–5 relevant hashtags outperform posts using 20–30 generic hashtags. (Instagram Creators, 2024)
• Posts with niche hashtags experience 28% higher engagement on average. (Sprout Social, 2024)
• Branded hashtags can increase community engagement by up to 50%. (Influencer Marketing Hub, 2024)

What this means:

Hashtags won’t save bad content - but they will help good content reach the right people.

3. Video vs Static: How Hashtags Work on Each Format

Reels (Short-Form Video)

Hashtags support categorisation but the algorithm prioritises:

• watch time
• completion rate
• replays
• shares
• topic relevance
• audio choice
• captions and on-screen keywords

Hashtags help your Reel get classified properly - but they don’t drive the actual viral lift.

Static Posts & Carousels

Hashtags play a slightly bigger role for static content because static is more searchable and more likely to be found through topic pages.

Carousels, in particular, perform strongly with:

• topic hashtags
• educational hashtags
• brand/industry hashtags

The format you choose doesn’t change whether hashtags work - but it does change what kind of hashtags help.

4. How Many Hashtags Should UK Businesses Use in 2025?

Instagram’s official recommendation:
👉 3–5 hashtags per post

But testing shows a slightly broader sweet spot:
👉 5–8 well-chosen, intentional hashtags

This number:

• improves categorisation
• avoids spam penalties
• reduces audience dilution
• keeps your caption clean
• supports SEO naturally

Avoid using 20–30 - it no longer works and can look desperate or outdated.

5. Types of Hashtags to Use (2025 Strategy)

You don’t need loads.
You just need the right mix.

1. Industry Hashtags

(e.g., #SocialMediaMarketingUK, #DigitalMarketingTips, #InstagramTips)
→ Helps Instagram understand your niche.

2. Audience Hashtags

(e.g., #SmallBusinessUK, #IndependentBusinessUK, #BusinessOwnersUK)
→ Targets your ideal customer persona.

3. Location Hashtags

(e.g., #ShropshireBusiness, #ShrewsburyLife, #TelfordBusiness, #MadeInTheMidlands)
→ AMAZING for local brands and service providers.

4. Content-Specific Hashtags

(e.g., #ReelsTips, #ContentIdeas2025, #SocialMediaAdvice)
→ Helps with topic categorisation.

5. Branded Hashtags

(e.g., #EvolveMyMedia, #EvolveTips)
→ Builds community + long-term searchable content.

Use 1–2 from each category to build the perfect stack.

6. Platform Comparison: How Hashtags Work vs Keywords

A huge trend in 2025 is the rise of Instagram SEO.

Here’s how it works:

Instagram now analyses:

• your caption wording
• your on-screen text
• your audio
• your keywords
• your location
• your topic

This is what determines whether your post appears in:

• Search results
• Explore pages
• Topic feeds
• Suggested Reels

Hashtags support this - but keywords are stronger.

Example:

Saying “How to grow your business using Instagram Reels” on-screen + in your caption has more ranking power than adding #instagramgrowth.

SEO first.
Hashtags second.

7. Hashtags for UK Businesses: Real Examples to Use

Here are some ready-made hashtag groups your readers can use.

General Business UK

#SmallBusinessUK
#SupportLocalUK
#UKBusinessOwners
#BusinessTipsUK
#SocialMediaMarketingUK

Local Shropshire Businesses

#ShropshireBusiness
#ShrewsburyLife
#TelfordBusiness
#OswestryBiz
#MadeInShropshire

Content and Social Media

#ContentCreatorsUK
#ReelsTips
#SocialMediaAdvice
#InstagramTips2025
#DigitalMarketingStrategy

Lead Generation / Paid Ads

#LeadGenerationUK
#PaidSocialTips
#FacebookAdsUK
#DigitalAds2025

These aren’t meant to be copied every time - but they show the structure you should follow.

8. Hashtag Mistakes UK Businesses Still Make (and How to Fix Them)

❌ Using 20–30 generic hashtags
❌ Copying the same hashtags on every post
❌ Using hashtags that are too broad (#Marketing, #Business)
❌ Adding banned hashtags
❌ Not mixing niche + local tags
❌ Hiding hashtags in comments (Instagram said this no longer helps)
❌ Using irrelevant trends

How to fix it:

• Stick to 5–8
• Keep them niche
• Rotate them weekly
• Use hashtags that your audience actually browses
• Add them in the caption, not comments

9. FAQs: Instagram Hashtags in 2025

Are hashtags still worth using?

Yes - for categorisation, discovery and searchability. Not for virality.

Do hashtags increase reach?

Yes… when relevant. Expect 10–30% more discovery, not viral spikes.

Do hashtags work on Reels?

Yes, but they_support SEO_, not distribution. The Reel itself determines reach.

Should hashtags go in the comments or caption?

Instagram confirmed: caption only.

How many hashtags should UK businesses use?

5–8 per post is the current sweet spot.

Do TikTok hashtags work the same?

No - TikTok relies heavily on watch behaviour and keywords instead. Hashtags are optional.

Final Thoughts: Hashtags Still Matter - But Strategy Matters More

Hashtags aren’t dead.
They’ve simply evolved.

In 2025, the businesses winning on Instagram aren’t relying on old tactics - they’re pairing great content, strong keywords, and intentional hashtags to help the algorithm understand their niche and show their posts to the right audience.

If you want a content strategy that uses hashtags properly - and actually brings you leads, not just likes - we’d love to help.

👉 Book a call with Evolve My Media
Let’s build a results-driven Instagram strategy for your business.

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