Navigating the 2025 Instagram Algorithm: What Handmade & Local Businesses Need to Know

Instagram’s latest algorithm update for 2025 is set to shake up the way content is discovered, prioritised, and shared. For small handmade and locally designed businesses, these changes could be a game-changer—offering more visibility, greater reach, and increased opportunities to connect with the right audience. But as with any algorithm shift, understanding the updates and adjusting your strategy accordingly is key. Here’s what you need to know.

More Exposure for Smaller Creators

In an effort to level the playing field, Instagram is now prioritising smaller creators in recommendations. This means that if you’re a small business creating original content, you have a better chance of appearing on users’ feeds, the Explore page, and Reels recommendations. The focus is shifting from large influencer accounts and viral repost pages to amplifying authentic, locally made products and stories.

What to do:

• Stay consistent with your posting schedule to increase your chances of being recommended.
• Engage with your audience through comments, DMs, and Stories to boost interactions and show the algorithm your content is valuable.
• Use a few niche hashtags relevant to your handmade or locally designed products to improve discoverability—gone are the days of using 30 hashtags.

The Power of Original Content

Instagram is doubling down on original content. If you’re simply resharing posts or relying heavily on reposted content, your reach could suffer. The algorithm will now prioritise unique, high-quality content and may even penalise heavily reposted material.

What to do:

• Focus on sharing behind-the-scenes content, product-making processes, and original storytelling about your brand.
• Avoid using stock images, generic templates, or Canva graphics—recent trends show that original photographs perform better than pre-made designs. Create custom visuals that showcase your brand’s personality.
• Experiment with carousel posts, Reels, and Stories to keep your content fresh and engaging.
• Instagram has shifted its feed format to prioritise portrait-style images over square posts. To maximise visibility, opt for a 4:5 aspect ratio when posting photos. This format takes up more screen space, making your content more eye-catching and improving engagement rates.

Content Aggregators Take a Backseat

Content aggregator pages—those that primarily share others’ content—are being deprioritised. Instagram aims to highlight the original creator by reducing visibility for accounts that repurpose existing content without significant modification. Additionally, reposted content may soon carry labels linking back to the original creator.

What to do:

• Ensure that your content is unique and not sourced from third-party aggregators.
• If you do share user-generated content (UGC, which refers to content created by customers, fans, or followers rather than the brand itself), always credit the original creator and add meaningful captions to provide context and value.
• Lean into storytelling by sharing the inspiration behind your designs and the craftsmanship that goes into your products.

AI-Powered Personalisation

Instagram is enhancing its AI capabilities to tailor users’ feeds based on their preferences and engagement patterns. This means that your followers will see more of what they interact with, making engagement more important than ever.

What to do:

• Pay attention to your engagement metrics—likes, comments, shares, and saves all impact how often your content appears in feeds.
• Encourage interaction by asking questions, running polls in Stories, and creating shareable content.
• Reply to comments and DMs promptly to foster a sense of community around your brand.

The Continued Rise of Video Content

Instagram is still prioritising video content, with a particular focus on longer Reels and enhanced video editing features. Businesses that incorporate video into their strategy will likely see improved reach and engagement.

What to do:

• Create engaging Reels showcasing product demos, behind-the-scenes clips, or customer testimonials.
• Use Instagram’s built-in video editing tools to enhance your content. Be mindful when repurposing videos from TikTok, as downloaded clips often contain watermarks. Instagram has been known to deprioritise content with visible watermarks to discourage content aggregation. To maximise reach, consider using the original video file or editing within Instagram’s native tools.
• Keep videos authentic—polished but not overproduced, as organic content tends to perform better.

Final Thoughts: How to Stay Ahead

As Instagram evolves, small handmade and local designer businesses must adapt their content strategies to stay visible. Here’s a quick recap of how to thrive under the new algorithm:

1. Prioritise original, high-quality content.
2. Engage with your audience to boost interactions and visibility.
3. Take advantage of video content, especially Reels.
4. Stay consistent with your posting schedule.
5. Avoid excessive reposting and give credit where it’s due.

By embracing these updates, you’ll not only maintain your reach but also create deeper connections with your audience—helping your small business grow in a way that feels authentic and sustainable. Keep creating, keep sharing, and let your brand’s unique story shine!