Coupons. They’re everywhere—from newspapers to your inbox, and now even in your mobile apps. They’ve become a vital part of shopping, influencing everything from what we buy to how we view brands. But where did this discount culture begin? Let’s take a deep dive into the history of coupons, tracing their origins and evolution over time, and how they became the powerful marketing tool they are today.

Key Stats:

8.5 million Coca-Cola coupons redeemed by 1913
100 million grocery coupons redeemed in 1957
300 billion coupons distributed annually by the late 1970s
96% of Americans use coupons regularly today
$3 billion in savings from coupons in 2020
Over 1 billion mobile coupons redeemed globally by 2019

1. The Birth of Coupons: Coca-Cola’s Game-Changing Idea (1887)

The coupon’s story begins in 1887, with Coca-Cola. In an effort to boost sales and make Coca-Cola a household name, founder Asa Candler came up with a novel idea—offering free samples to the public. Candler distributed handwritten coupons that offered customers a free glass of Coca-Cola.

This seemingly simple marketing trick was a massive success. By 1913, an estimated 8.5 million people had redeemed these coupons, transforming Coca-Cola from a small regional beverage into an iconic global brand.

2. The Rise of Coupons in Grocery Stores (1930s–1960s)

Fast forward to the 1930s, during the Great Depression, a time when every penny counted. Grocery stores and manufacturers quickly adopted coupons as a way to lure shoppers in and build brand loyalty.

By the 1940s, supermarkets were booming, and the grocery coupon market exploded. Brands began printing coupons in local newspapers, offering cents-off discounts on essentials like coffee, flour, and canned goods. This strategy was a hit among cash-strapped families, helping many brands survive during difficult economic times.

In fact, in 1957 alone, there were approximately 100 million coupons redeemed in the U.S., a staggering number that showed how deeply embedded coupon culture had become in the American shopping experience.

3. The Golden Age of Coupons: Post-War Consumerism (1970s)

The 1970s marked the “golden age” of coupons. With the rise of mass media, especially newspapers and magazines, coupon distribution skyrocketed. This era also saw the introduction of the “FSI” or Free Standing Insert, which allowed manufacturers to insert coupon booklets into Sunday newspapers.

During this period, companies realized they could use coupons not just to offer discounts, but to shape buying habits, introduce new products, and dominate shelf space. Supermarkets began competing for consumers based on how many coupons they accepted, which increased the importance of clipping coupons in American households. By the end of the 70s, over 300 billion coupons were distributed annually in the U.S., with a redemption rate of about 4%.

4. Digital Revolution: Coupons Go Online (1990s–2000s)

The 1990s introduced a seismic shift in the coupon world. With the advent of the internet, everything went digital—including coupons. Companies like Valpak and Coupons.com emerged as leaders in the new wave of digital coupon distribution. Rather than clipping paper coupons, consumers could now visit websites, print coupons, or redeem codes online.

In 1998, the first-ever online coupon was issued by Lands’ End, offering discounts on their clothing via their website. This opened the floodgates for other retailers to follow suit, and by the mid-2000s, over 20 million consumers were using online coupons annually in the U.S. The rise of e-commerce platforms like Amazon and eBay further accelerated this trend.

5. The Age of Mobile Coupons (2010s–Present)

With smartphones becoming the norm, the 2010s witnessed the rise of mobile couponing. Apps like Couponzania, Honey, and RetailMeNot revolutionized the way consumers searched for and redeemed coupons. Rather than hunting through newspapers or browsing multiple websites, consumers could now access thousands of deals at their fingertips.

By 2019, over 1 billion mobile coupons were redeemed globally, and the trend shows no sign of slowing down. Recent statistics show that 96% of Americans use coupons in some form, with an increasing shift towards digital and mobile platforms. In fact, mobile coupons have been shown to have a higher redemption rate, often around 10%, compared to traditional paper coupons, which hover around 1%–2%.

6. The Future of Coupons: AI, Personalization, and Data-Driven Discounts

Looking forward, the future of coupons is all about personalization. Thanks to advances in AI and big data, companies can now track your shopping habits and send you personalized discounts based on your preferences. This approach boosts redemption rates and increases customer loyalty.

In addition to this, we are seeing the rise of AI-driven deal finders like Honey, which automatically applies discounts and coupon codes at checkout without the need for users to manually search for them. This evolution is all about convenience—shoppers now expect seamless, instant discounts tailored to their needs.

7. The Economic Impact of Coupons: By the Numbers

Coupons aren’t just a small part of consumer culture—they have a massive economic impact. In 2020 alone, U.S. consumers saved over $3 billion by using digital and paper coupons. While paper coupons remain popular (particularly for groceries), digital coupons now account for a growing share of redemptions.

It’s also worth noting that the coupon industry itself is a multi-billion-dollar ecosystem. Retailers, manufacturers, and third-party services like Catalina Marketing and Valassis invest heavily in coupon distribution, knowing the power these small slips of paper—or digital codes—have in driving sales.

Final Thoughts: How Coupons Shaped Consumer Behavior

From Coca-Cola’s humble beginnings to the sophisticated, personalized coupons of today, the history of coupons is deeply intertwined with the evolution of consumerism. Coupons have evolved from handwritten slips to AI-driven discounts, shaping how people shop and how brands market themselves.

What started as a marketing experiment over a century ago has grown into a massive industry, and with the continuing growth of mobile and personalized deals, it’s clear that coupons will remain a cornerstone of retail for years to come.

Coupons aren’t going anywhere, and as technology advances, they’re only becoming more personalized and accessible. Whether you’re flipping through a Sunday paper or swiping through a mobile app, the next great deal is always just around the corner.