The design software company justifies a substantial increase in subscription costs due to the integration of advanced AI features.
Canva, the popular design platform, is facing backlash after announcing significant price increases for its Canva Teams subscription. Starting next year, global customers on this business-focused plan—designed for multiple users—will see their subscription costs soar by over 300% in some cases. Canva attributes this steep hike to the enhanced value provided by its recently launched generative AI tools.
In the United States, some Canva Teams users have reported that their annual subscription fees will jump from $120 for up to five users to a staggering $500 per year. Canva plans to offer a 40% discount for the first 12 months, bringing the cost down to $300 temporarily. Meanwhile, in Australia, the monthly fee for five users is transitioning from a flat rate of $39.99 AUD (approximately $26 USD) to $40.50 AUD per user. Consequently, a team of five will see their annual expenses increase from $480 AUD (around $323 USD) to $2,430 AUD (about $1,636 USD).
Some of the accounts affected by this increase were previously locked into lower prices that Canva no longer offers. Earlier this year, in April, Canva quietly adjusted its pricing for new Teams subscribers, setting the cost at $10 per user per month and instituting a minimum requirement of three users. Now, according to Canva’s communications lead, Louisa Green, existing users will be migrated to this new pricing structure in September to align with the current market value of their services and the enhanced features of the platform.
“Our product offering has expanded significantly over the past few years with the introduction of new services such as the Visual Suite and Magic Studio,” Green stated in a comment to The Verge.
Canva has been on an innovation spree, rolling out a host of generative AI features, including the Magic Media text-to-image generator and the Magic Expand tool, which extends image backgrounds. These additions have transformed Canva from a niche tool for design and marketing professionals into a comprehensive workspace platform.
While Canva has previously announced price adjustments, these latest increases were communicated primarily through emails to affected customers. Other subscription tiers, such as those for Pro and Enterprise users, do not seem to be impacted by the recent changes.
The sharp price hike marks a significant shift for Canva, which initially gained popularity as an affordable and straightforward alternative to more costly graphic design software like Adobe’s offerings. Many Canva users have expressed their frustration online, with some even declaring their intent to cancel subscriptions and switch to Adobe products. These price increases also come on the heels of Canva’s acquisition of the company behind Affinity’s creative software suite for a reported several hundred million British pounds and ahead of a potential public listing in the United States slated for 2026.
