Introduction
Canva, a popular online design platform, has announced a significant price increase for its Teams product. The company cites the addition of new features, particularly AI-powered tools, as the primary reason behind this adjustment. The price hike aims to reflect the enhanced value and capabilities of the Teams offering.

Details of the Price Increase
The price changes for Canva Teams vary across different regions. In the United States, some users will see their annual subscription fee jump from $119.99 for up to five users to a staggering $500. However, a 40% discount will be applied for the first 12 months, reducing the initial cost to $300. The new pricing structure will take effect in early December 2024.In Australia, the existing flat fee of $39.99 AUD (approximately $26 USD) per month for five users will be replaced by a per-user charge of $40.50 AUD. As a result, a team of five will face an annual cost increase from $480 AUD (around $323 USD) to $2,430 AUD (approximately $1,636 USD).
Reasons for the Price Increase
Canva justifies the price hike by highlighting the significant enhancements made to the Teams product over the past few years. The company has introduced new features such as the Visual Suite and Magic Studio, which incorporate AI-powered tools for image generation, video creation, and content enhancement. These additions have transformed Canva from a basic design platform into a more comprehensive workspace solution.”Canva Teams has come a long way since launching in 2020, with major enhancements in team collaboration, brand management, the launch of our Visual Suite and our investments in Magic Studio,” a Canva spokesperson stated. “Our original pricing reflected the early stage of this product and has remained unchanged for the last four years. We’re now updating the price for customers on this older plan to reflect our expanded product experience.”
Impact on Users
The price increase is expected to have a significant impact on Canva’s customer base, particularly small businesses and startups that have relied on the platform for its affordability. Some users have expressed their discontent on social media, with some indicating that they may switch to alternative design software like Adobe’s offerings.To ease the transition, Canva has stated that eligible impacted customers will benefit from 12 months of discounted pricing before the full price takes effect. The company is also emphasizing the value that its AI-powered features bring to the Teams product, hoping to justify the higher costs.
Competitive Landscape
Canva’s price increase positions it closer to its competitors in the design software market, such as Adobe. While Canva has long been seen as a budget-friendly alternative to Adobe’s offerings, this change may narrow the gap in pricing. However, Canva still maintains a significant advantage in terms of user-friendliness and accessibility for non-professional designers.
User Feedback and Market Response
Initial reactions from Canva Teams users have been mixed, with some expressing concerns about the affordability of the platform going forward. Some users have taken to social media to voice their displeasure, while others have acknowledged the value of the new features and are willing to pay the higher price.The market response will be closely watched, as Canva’s ability to retain customers and attract new users in the face of this price increase will be a key indicator of the company’s long-term success.
Future Outlook
As Canva continues to enhance its product offerings, particularly with the integration of AI-powered tools, the company is likely to focus on justifying the higher prices through improved functionality and user experience. The acquisition of Affinity, a professional design software company, also suggests that Canva is aiming to expand its reach into the enterprise market, where higher pricing may be more acceptable.In the long run, Canva’s ability to maintain its position as a leading design platform will depend on its ability to balance innovation, user experience, and pricing in a way that keeps it competitive in the rapidly evolving design software market.
Conclusion
Canva’s price increase for its Teams product is a significant move that reflects the company’s ambitions to expand its offerings and capture a larger share of the design software market. While the price hike may be met with some resistance from users, Canva’s focus on AI-powered features and its acquisition of Affinity suggest that the company is positioning itself for long-term growth and success in the design industry.