Prime Hydration, the beverage brand from Logan Paul and KSI, has experienced a 42% decline in year-over-year sales, according to Circana Food data. The company, which previously reported strong initial sales and significant public attention, is now facing slower market performance.

A promising start then its decline

Launched in 2023, Prime Hydration was estimated by Bloomberg to reach $1.2 billion in sales during its first year. The brand used high-visibility marketing, including partnerships with sports teams, event sponsorships and a notable social media presence. Despite this early attention, Prime’s recent sales numbers show a notable decrease.

There are several factors that may have contributed to this outcome. In July 2023, the FDA reviewed Prime’s marketing and product content, questioning the combination of its ingredients and the intended appeal to younger consumers. Over the past year, the brand has also dealt with legal issues, including allegations regarding product composition and reported contract disputes.

Challenges for creator-led brands

These developments show challenges that can arise for creator-led businesses in competitive markets. A heavy focus on viral marketing and influencer-driven awareness can be difficult to maintain over time, especially when regulatory and legal issues enter the picture. Maintaining long-term growth often requires adapting strategies to new risks and shifting consumer expectations.

Some industry observers have suggested changes to product formulation or marketing strategy as possible ways forward. Comparisons have been made to the business approach of Feastables, another creator-backed product, which has worked to diversify revenue and organize business operations for consistency.

Prime Hydration’s current position raises questions about how the founders and their team will adapt. The case shows the risks and volatility involved with creator-driven brands and the importance of ongoing adjustments. Moving forward, the market will be watching to see how Prime responds to recent challenges and attempts to stabilize sales performance.

Image courtesy: PRIME