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The purpose of this paper is to explore the core forces and drivers of the creative transformation of a traditional industry through the assessment of the mares' milk industry (MMI). Using an exploratory single case study, this research reveals the main driver mechanisms and challenges of the creative transformation of a traditional industry using the case of the MMI in Kazakhstan. Grounded theory, along with in-depth interviews of 36 MMI business staff in Kazakhstan, has been used in this study. The research identifies the following four key driving factors for transforming a commodity-based traditional industry into a cultural creative emerging industry: National demand, ingenuity and creativity, affordance (support), and actors (attitudes, skills, and characteristics). This study also explores challenges, such as administrative negligence, the threat of losing authenticity, poor industry cooperation, and cultural branding. A sustainable transformation into a creative MMI requires the government to give its full attention to implementing existing-related policies, emphasizing the role of authenticity, stressing the importance of industry cooperation, and promoting iconic branding. The study findings will help policy makers, administrators, and related stakeholders to understand the transformation of the MMI when developing related policy, strategy, and sustainable development. The findings can also serve as guidelines for other traditional agricultural sectors that are undergoing transformation into creative industries. [ABSTRACT FROM AUTHOR]