The obvious answer is sanded grout has sand. But the in depth answer has many differences.
Sanded grout which is the most common, can be used in a grout joint from 1/8" to 1/2" (and larger but check the grout). Sanded grout scratches many tile like glass.
Non sanded grout can only be used on joints 1/8" or less. Non sanded grout is typically seen on marble and granite tile, many wall tile, and all glass tile.
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Yes, you can use unsanded grout for floor tile but you'd only want to use it if the grout lines were 1/8" wide or less - like for granite or marble tiles.If using those, be sure you have a pefectly flat surface.ANSWER:You never want to use sanded grout with marble. If the marble has to be restored or re-polished for any reason the sand in the grout with act like sandpaper on the stone.
Grout is a substance that is used to fill gaps between tiles, such as in a shower or bathroom. Grout may be made of small aggregate, sand, and Portland cement. It may also be made of Portland cement or masonry cement and sand. There are many different types of cement, and these are usually used as an ingredient with which to make concrete and mortar.
One shrinks a little as it sets, one doesn't.
Grout is not toxic. Grout sealers and adhesives can be toxic but not the grout itself. Tami Barker www.mosaicforms.com Mosaic Art Instructor and Creator
You don't necessarily "NEED" to seal it, but it is a wise choice! Grout is a cementitious material just like concrete and both absorb water unless they are waterproofed. Absorptive concretes develop structural issues and require repairs with chlorides and other contaminates which enter and cause reinforcing steel to corrode. Grouts merely absorb stains and discoloration becomes an eyesore. Mop water that isn't changed often enough when cleaning will be absorbed and turn grout joints dark, and spills are wicked into a grout within seconds. I have beige tile and grout in a kitchen/family room area that is six years old and looks brand new. Sealed with a product called StableCrete to waterproof the day after it was installed. Common response to visitors walking in, "What a beautiful tile job, is it new?"