TikTok boosts the British economy by 10 billion pounds

Social media platform TikTok, known for its short-form videos, is “turning online discovery into real-world growth and jobs,” unlocking entrepreneurialism in Britain, as new research shows that the platform contributed at least 10 billion pounds to the UK economy in 2025 and supported 153,000 jobs.

The report utilises research conducted by public policy research agency Public First, exploring how users, creators and businesses use TikTok, alongside additional research from accounting firm EY on TikTok’s direct spending in the UK.

TikTok attracts more than 30 million people across the UK every month, and the report reveals that discovery on the social media platform is “active, not passive,” and much more than a place where people watch content, but “a place where culture moves, businesses grow, people connect, and ideas become reality”.

Ali Law, director of TikTok UK, said in a statement: "TikTok is turning online discovery into real-world growth and connection.”

Small businesses benefiting from TikTok

Research notes that TikTok’s effect is particularly pronounced for small businesses, with its UK audience boosting revenues for small and medium-sized enterprises by 3.4 billion pounds in 2025. Of UK businesses using TikTok, 84 percent add that it has helped them increase their sales and revenue, while almost one third (28 percent) note that they have hired additional staff as a direct result of being on the platform.

Additionally, both new and established businesses benefit from people using TikTok to discover what to buy, where to go and what experiences they want. More than 1 in 3 (39 percent) of all UK businesses use TikTok as part of their marketing strategy, “and they see clear commercial returns,” adds the report.

TikTok Shop has also helped turn discovery directly into commerce, with over 300,000 small businesses now selling on the platform. Research adds that 91 percent of businesses on TikTok Shop said that it has allowed them to grow their sales and revenue, while 94 percent say it has enabled them to launch new products.

The social media giant has also seen its Live shopping format grow 55 percent year-on-year, with more than 6,000 live shopping sessions taking place every day in the UK, enabling businesses to reach new audiences and drive sales. Over one in four (28 percent) of businesses using TikTok say they have sold out of a product because of the effects of TikTok and TikTok Shop.

On the impact TikTok Live has had on driving fashion growth, Lidia Perrella, fashion design graduate and founder of Manchester-based footwear brand Dia Studios, said: "We're on a mission to make boots that genuinely fit everyone, to our customers' exact measurements, from fun, colourful statement styles to everyday classics. TikTok Live has been such a big part of our growth journey. Being able to chat with customers live, explain our fit options, show how to measure correctly and answer sizing questions has made buying footwear so much easier.

"It has also created an amazing community where people can see the boots on a real person, get styling advice and ask questions in real time. It's made a VIP shopping experience accessible to everyone, which has become one of the most special parts of our business."

TikTok allows businesses to reach new customers internationally

The report adds that TikTok-driven exposure extends beyond the UK. It has helped expose British businesses to a global audience and reduced barriers to exporting, contributing to an estimated 1.1 billion pounds in export growth in 2025. Of UK businesses on the platform, 72 percent said that TikTok has helped them reach new customers, while 94 percent said the platform has made it easier for them to sell their products overseas.

Fashion and beauty leading growth on TikTok

TikTok is now one of the leading platforms for discovering fashion and beauty, “shaping what people buy and how trends emerge,” with 30 percent of young adults in the UK turning to TikTok as their main source for beauty and fashion recommendations, the equivalent to 1.8 million young adults. TikTok Shop has also become the UK’s fourth largest beauty retailer with 60 percent year-on-year growth.

TikTok creating entrepreneurs

The research adds that TikTok helps turn interests into livelihoods, with around 8 million people (27 percent) of British TikTok users posting content more than once a week without being full-time creators or businesses. These 'casual creators' generate a constant flow of organic content that helps products, brands and ideas gain visibility and momentum; in addition, this group of users also shows an entrepreneurial spirit, and are more than twice as likely as the UK average to say they want to start a business in the next five years (54 percent vs 21 percent).

Craig Beaumont, executive director at the Federation of Small Businesses (FSB), added: “TikTok shows that anyone can be an entrepreneur; all you need is an idea, a product, and a smartphone, and you can potentially reach audiences around the world, no matter if you’re in a big city or a tiny village.

“It’s great news that video views can translate to real-world sales, in person or via TikTok Shop, and at Federation of Small Businesses we are really excited about the opportunity to support newly-fledged businesses and entrepreneurs as they start small and reach for the stars.”

TikTok isn’t just about London

The research also notes that TikTok is a “national platform” in the UK, and while its audience skews younger than the British population as a whole, it is not simply a youth platform. In terms of age range, 28 percent of TikTok users are aged 18 to 24, 29 percent are aged 25 to 35, and over one in three are aged 35+.

It also adds that its audience is national in geography as well as age. While 17 percent of users are in London, TikTok also reaches “large audiences” across the North West, West Midlands, Scotland, Yorkshire and the Humber, Wales and Northern Ireland.

The platform also reaches a more diverse audience than the UK average, with Black, Asian and Mixed or Multiple ethnic groups all represented at higher levels among TikTok users than in the population overall.