Canva's 300% Price Increase: Is AI-Driven Design Worth the Cost?

Canva, the popular design software company, is set to implement a significant price increase for its subscription service, Canva Teams, starting next year. The price hike, which in some cases exceeds 300%, is being attributed to the company’s recent expansion of generative AI features. These new tools, Canva argues, have added substantial value to the platform, justifying the steep rise in costs for users.

Details of the Price Hike

In the United States, some Canva Teams users have reported that their annual subscription fees will jump from $120 to $500 for up to five users. While a 40% discount will reduce this to $300 for the first year, the increase remains significant. Similarly, in Australia, the monthly fee of $39.99 AUD (approximately $26 USD) for five users is being replaced by a per-user fee of $40.50 AUD, leading to a yearly cost increase from $480 AUD to $2,430 AUD (approximately $1,636 USD) for a team of five.

Impact on Existing Users

Many of the accounts facing these increases were previously locked into lower rates that Canva no longer offers. The company began transitioning new Teams subscribers to a $10 per user per month pricing model in April, with a minimum of three users required. Now, existing users are being moved to this new structure starting in September. According to Louisa Green, Canva’s communications lead, this change is meant “to reflect the current price of the plan and the value of our expanded product experience.”

Canva’s Expansion of AI Features

In recent years, Canva has rolled out a range of generative AI features, significantly expanding its suite of products. These include tools like the Magic Media text-to-image generator and the Magic Expand background extension tool, which have broadened Canva’s appeal beyond design and marketing professionals to a wider range of users. Louisa Green highlighted that the introduction of offerings like the Visual Suite and Magic Studio has been a key factor in the company’s decision to increase prices.

Mixed Reactions from Users

The reaction from Canva users has been mixed, with some expressing frustration over the steep price increases. Online, many users have condemned the changes, with some indicating plans to cancel their subscriptions and switch to Adobe’s design software. The price hike comes at a time when Canva is positioning itself as a more comprehensive and premium platform, following its acquisition of the company behind Affinity’s creative software suite and ahead of a potential public listing in the US in 2026.

Conclusion: A New Era for Canva

Canva’s substantial price increases mark a significant shift for a company that was once known for offering a cost-effective alternative to Adobe’s design tools. As Canva continues to evolve and integrate more advanced AI-driven features, the company is clearly aiming to reposition itself in the market. Whether users will see the value in these changes remains to be seen, but it’s clear that Canva is moving into a new era with a stronger focus on premium offerings.