Why are .CSV files used instead of excel while web development ?

A CSV is a comma-separated values file, which allows data to be saved in a tabular format. CSVs look like a garden-variety spreadsheet but with a .csv extension.
CSV files can be used with most any spreadsheet program, such as Microsoft Excel or Google Spreadsheets. They differ from other spreadsheet file types because you can only have a single sheet in a file, they can not save cell, column, or row. Also, you cannot not save formulas in this format.
These files serve a number of different business purposes. They help companies export a high volume of data to a more concentrated database, for instance.
They also serve two other primary business functions:
  • CSV files are plain-text files, making them easier for the website developer to create
  • Since they're plain text, they're easier to import into a spreadsheet or another storage database, regardless of the specific software you're using
  • To better organize large amounts of data.

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