The main difference is the starting point. Fermented vinegar (like Apple Cider) is made directly from crushed fruit or grains and retains their flavor and nutrients. Distilled vinegar is made from pure grain alcohol that has been processed to create a clear, high-acidity liquid.

Quick Comparison:

Fermented: Retains “The Mother,” flavors, and colors of the original source (apples, grapes, etc.).
Distilled: Lab-clear, neutral in taste, and best for heavy-duty cleaning or pickling