When a digital camera captures a picture, it saves it as raw data. This raw data is treated and compressed before being saved in the JPEG format if the camera format is set to JPEG. When the camera format is set to raw, no processing is done, so the file contains more tone and color information. There is more processing freedom than a JPEG since the file contains more data. A raw file contains the components for a specific meal, which you can prepare whatever you want, whereas a JPEG is that meal already cooked, and you have less flexibility in how you can adapt it.

White balance is adjusted by the camera in a JPEG, and there are less possibilities to change it in post-production. When editing a raw file, you have complete control over the white balance.
In a JPEG, lost detail in overexposed highlights cannot be restored. Even if the highlights in a raw file appear to be fully white at first glance, it may be feasible to alter those tones and uncover hidden highlight detail.
The same can be said for photographs that are darker and underexposed. In many cases, shadow detail that is irreversibly lost in a JPEG can be restored more successfully in a raw file. A raw file can be subjected to noise reduction more successfully than a JPEG.

The camera’s image processor has already “generated” a JPEG, even if it is straight out of the camera. It’s possible that adjustments like brightness, contrast, color saturation, and even sharpness have already been made. Although a JPEG image’s appearance can be altered with an image editing program, because it is a compressed format meant to produce reduced file sizes, a significant amount of tone and color data is permanently lost during the compression process. As a result, the file has considerably less potential tonal values than a raw file of the same picture would have. This difference can be crucial for some photographs.