The blast at the San Pablito fireworks market in Tultepec, about 20 miles (32 km) north of Mexico City, also injured at least 70
others, according to a tweet from federal police.
Isidro Sanchez, the head of Tultepec emergency services, said the death toll was preliminary as rescue workers scoured the site.
Local television showed a flurry of multi-colored fireworks exploding in all directions as a massive plume of smoke rose above
the market while people frantically fled.
Aerial footage showed charred stalls and destroyed buildings.
A blast struck the popular market in September 2005 just before independence day celebrations, injuring many people.
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