TikTok drives £10 billion boost to UK economy as beauty brands benefit

Economic activity driven by TikTok contributed at least £10 billion in gross value added (GVA) to the UK economy in 2025, supporting an estimated 153,000 jobs, according to new research.

The report, produced by public policy research agency Public First with additional analysis from EY and published by TikTok, explores the platform’s role in driving consumer spending, business growth and employment across the UK.

The estimated £10 billion contribution represents the value added to the economy through activity enabled by TikTok, rather than consumer sales or TikTok’s own revenue. This is equivalent to around 0.3% of UK GDP.

Public First estimates that more than £9 billion of this contribution came from people and businesses using TikTok to discover, promote and sell products and services, while EY’s analysis included TikTok’s direct UK investment, including its offices and workforce.

Small businesses report higher sales

Small and medium-sized enterprises (SMEs) are among the biggest beneficiaries of TikTok’s growing role in the UK economy. The research estimates that businesses using the platform generated £3.4 billion in additional output during 2025.

Among SMEs active on TikTok, 84% said the platform had helped increase their sales and revenue. More than a quarter (28%) said they had hired employees whose roles included working with TikTok, with Public First estimating that businesses created 31,000 jobs as a direct result of using the platform.

Ali Law, Director of TikTok UK, said: “TikTok is turning online discovery into real-world growth and connection.”

Beauty as a leading category

TikTok has also become a major destination for beauty and fashion discovery, influencing how consumers find products, follow trends and make purchasing decisions.

This impact is reflected in the rapid expansion of TikTok Shop, which has grown by 60% year-on-year to become one of the UK’s largest beauty retail platforms. It comes as more than 300,000 small businesses now sell through TikTok Shop, while LIVE shopping has continued to accelerate, growing by 55% year-on-year with more than 6,000 shopping broadcasts taking place across the UK every day.

The platform’s influence is particularly strong among younger consumers. Around 30% of young adults in the UK say TikTok is their main source of fashion and beauty recommendations - equivalent to approximately 1.8 million people.

For fashion and beauty businesses, this visibility is increasingly valuable, with 80% saying that being featured on TikTok would help improve their sales and revenue.

Creators driving trends and connecting brands with audiences

Creators remain at the heart of TikTok’s beauty ecosystem. Through formats such as “Get Ready With Me” videos, makeup tutorials and product reviews, creators help shape trends, build communities and influence buying decisions.

Today, 21% of TikTok creators produce content focused on fashion, beauty and skincare, helping brands connect with new audiences through organic content, paid advertising and creator partnerships.

The growth of TikTok’s influence reflects the wider strength of the UK’s fashion and beauty industries, which generate more than £60 billion annually and continue to reinforce the country’s reputation as a global centre for creativity, innovation and emerging talent.