Home Social Media Marketing How to Use Instagram Hashtags for Business Growth in 2025

How to Use Instagram Hashtags for Business Growth in 2025

by Ranjeet Singh
Instagram Hashtags for Business Growth

Why Instagram Hashtags Still Matter

In the ever-changing world of social media, one thing that continues to drive growth and engagement on Instagram is – hashtags.

Whether you’re a small business, a digital creator, or a brand, hashtags are your gateway to visibility. They help new audiences discover your content, build community around your niche, and attract potential customers – all organically.

But here’s the catch: not all hashtags are created equal.

If you’re randomly throwing hashtags like #love #instagood #business – you’re missing out on the true power of Instagram’s discovery system.

In this post, we’ll guide you step-by-step on how to use Instagram hashtags for your business effectively in 2025, including the best strategies, examples, and expert tips that work today.

What Are Instagram Hashtags?

Hashtags (#) are keywords or phrases preceded by the pound symbol (#) – used to categorize content on Instagram.

When users click or search a hashtag, they see a feed of posts using the same tag.
For example, searching #PetGrooming shows posts related to pet care and grooming services.

For businesses, hashtags are like SEO keywords for Instagram.
They help your posts reach relevant users and boost organic visibility – without spending a rupee on ads.

Why Businesses Should Use Instagram Hashtags

If you’re serious about marketing on Instagram, hashtags should be part of your strategy.

Here’s why:

1. Increase Reach and Visibility

Using relevant hashtags helps your posts appear in hashtag searches, explore feeds, and even reels discovery – reaching users who don’t yet follow you.

2. Target Specific Audiences

Niche hashtags help you connect with people who are genuinely interested in your products or services.
Example:
Instead of #fashion, use #sustainablefashionindia or #handmadejewellerydelhi for targeted reach.

3. Boost Engagement

Posts with hashtags receive up to 12.6% more engagement than those without. More likes, comments, and shares mean higher visibility in the Instagram algorithm.

4. Build Brand Awareness

Branded hashtags (like #WaffleBytesSEO or #MyKittenIndia) help create a recognizable identity for your brand.

5. Track Campaigns and UGC (User-Generated Content)

Custom hashtags allow you to track how your campaigns perform and encourage your followers to share their own posts with your tag.

Types of Instagram Hashtags Every Business Should Use

Mixing different hashtag types is key to a balanced strategy.

Here are the main categories:

Hashtag Type

Example

Purpose

Branded Hashtags

#WaffleBytesSEO #MyKittenCare

Promote your business name or campaign

Industry Hashtags

#DigitalMarketing #PetGrooming

Represent your niche

Community Hashtags

#EntrepreneurLife #PetLoversClub

Connect with like-minded users

Location Hashtags

#BangaloreStartups #DelhiCafes

Target local audiences

Event Hashtags

#WorldEnvironmentDay #DiwaliSale

Engage with trends or occasions

Descriptive Hashtags

#HealthySnacks #VeganCookies

Describe your product or service

Trending Hashtags

#ThrowbackThursday #MondayMotivation

Leverage popular trends for visibility

Pro Tip:
Don’t just copy trending tags – focus on relevance + engagement. A perfectly relevant hashtag with lower volume often performs better than a generic one with millions of posts.

How Many Hashtags Should You Use on Instagram?

Instagram allows up to 30 hashtags per post, but that doesn’t mean you should use all 30 every time.

Recent data from Meta suggests:

  • 9–15 hashtags per post offer the best balance of reach and relevance.
  • Use different sets of hashtags across posts to avoid looking spammy.

For Reels, use fewer (3–7 highly targeted) hashtags for cleaner captions and better discovery.

How to Find the Right Hashtags for Your Business

1. Use Instagram Search

Type your main keyword in the search bar (e.g., “#digitalmarketing”) and explore suggested hashtags with their post counts.

2. Analyze Competitors

See what hashtags similar businesses or influencers in your niche are using.

3. Use Hashtag Tools

Try tools like:

  • Hashtagify
  • RiteTag
  • Flick
  • All Hashtag
    They help identify relevant hashtags, analyze performance, and find trending ones.

4. Check Engagement Level

Avoid hashtags with too many posts (10M+) – your content may get buried instantly.
Aim for hashtags with 10K–500K posts for a good visibility window.

5. Mix Popular + Niche Tags

Example for a home bakery:

  • Popular: #HomeBakers #BakingLove
  • Niche: #EgglessCakesDelhi #CustomBirthdayCake

This mix helps reach both broad and targeted audiences.

How to Use Instagram Hashtags Strategically

1. Include Hashtags in Captions or First Comment

Both work – but adding them to the first comment keeps your caption clean and professional.

2. Use Branded Hashtags for Campaigns

Encourage your audience to tag your brand hashtag.
Example: #BakedByWaffleBytes or #PetStyledByMyKitten

This helps you build a content community and makes tracking UGC easy.

3. Use Hashtags in Stories and Reels

You can add hashtags (hidden behind stickers or text) to increase discoverability in story search results.

4. Leverage Location Hashtags

If you have a physical business, add local hashtags like:
#MumbaiSalon #DelhiPhotographer #BangaloreStartups

It’s a free way to attract local customers.

5. Create Hashtag Sets

Prepare different hashtag groups for each type of post – product, testimonial, tips, or reels.
Rotate them to keep your strategy fresh and algorithm-friendly.

6. Monitor Hashtag Performance

Use Instagram Insights to check which hashtags drive the most reach and engagement.
Focus on the ones performing best – and drop the rest.

Example: Hashtag Strategy for a Pet Grooming Brand

Business: MyKitten (Pet Grooming & Accessories)

Post Type

Example Hashtags

Product Showcase

#PetGrooming #CatBath #DogShampoo #PetCareIndia

Customer Story

#HappyPets #MyKittenLove #PetParentLife

Reels

#PetTransformation #HomeGrooming #CuteCatsOfInstagram

Local Promotion

#BangalorePets #DelhiPetCare #MumbaiDogLovers

Campaign

#StyledByMyKitten #PetSpaWeekend

Tip: Save your hashtag groups in Notes or a social media scheduling tool like Buffer or Later for quick use.

Common Hashtag Mistakes to Avoid

Even with a great strategy, small errors can limit your success. Watch out for these:

Using banned hashtags (check before posting)
Repeating the same hashtags in every post
Using irrelevant or overly generic tags
Adding hashtags only at the end with no context
Ignoring analytics or performance data

Advanced Tips to Boost Results

1. Combine Hashtags with SEO

Treat hashtags like keywords for Instagram search.
Align them with your website SEO keywords for consistent branding.

2. Use Hashtags in Bio

Include 1–2 branded hashtags in your Instagram bio – it encourages followers to engage with your tag.

3. Add Hashtags in Comments on Old Posts

You can refresh engagement by adding new relevant hashtags to older posts that still perform well.

4. Run a Hashtag Campaign

Create a contest or challenge using your brand hashtag.
Example: #WaffleBytesChallenge or #MyKittenMoments

This drives UGC, boosts visibility, and strengthens your brand identity.

5. Keep Updating Your Hashtag List

Trends evolve fast. Review and update your hashtag sets every 30–45 days to stay relevant.

Case Study: How Hashtags Can Drive Growth

Let’s say a local skincare brand uses:

  • #NaturalSkincareIndia (50K posts)
  • #GlowWithAyurveda (10K posts)
  • #VeganBeauty (300K posts)

Within 3 months, their post reach doubles – and engagement jumps by 40%. Why?
Because these hashtags attract exactly the audience that cares about natural skincare.

Hashtags work when they are strategic, relevant, and authentic.

Hashtags Are the SEO of Instagram

If you treat hashtags as an afterthought, you’re missing out on massive organic potential.

A smart hashtag strategy helps your business:

  • Get discovered by the right audience
  • Build stronger brand identity
  • Drive engagement and conversions organically

So next time you post on Instagram, spend a few extra minutes researching and planning your hashtags.

They’re not just tiny symbols – they’re powerful growth tools for your business on social media.

 

Use 9–15 targeted hashtags for best engagement. Avoid using all 30 unless they’re highly relevant.

Both work fine, but posting hashtags in the first comment makes your caption look cleaner while still reaching your audience.

No. Repeating the same hashtags can look spammy. Rotate hashtag sets based on post type or topic.

Check Instagram Insights → Reach → From Hashtags to see which tags bring the most visibility.

Yes. They help strengthen your brand identity, track campaigns, and build a community of followers around your business.

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