In creative writing, fiction and non-fiction are terms used to describe the content of a text. A work of fiction deals with content that is imaginary or not factual, and if a text is factually accurate or true, then it's non-fiction.
Creative Nonfiction
Creative nonfiction uses literary or 'creative writing' techniques to create a factually-accurate narrative that reads like a piece of fiction. Whereas the purpose of standard non-fiction is to convey information, creative nonfiction intends to inform the reader whilst entertaining them.
Popular forms within the genre include travel-writing, biographies, memoirs and food-writing.
Fiction
Fictional writing does not have the same obligations as creative non-fiction, as it does not claim to tell the truth. Although some works of fiction (particularly historical fiction and realism) intend to convey a sense of a certain time or place, the characters and events don't have to be real. Even semi-fiction that is 'based on a true story' is still a fictionalised account, and the author still has the freedom to invent and imagine.
Popular genres include fantasy, speculative fiction, romance, thriller and adventure.