Watch the moment a fireworks explosion hit a market in Mexico, killing at least 29 people

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Mexico's best-known fireworks market has been destroyed by an explosion, leaving at least 29 dead and many more injured.

The chain reaction explosion occurred on Tuesday afternoon as the San Pablito market was filled with people purchasing fireworks to celebrate the Christmas and New Year holidays.

A video of the incident shared on the Metro Tacubaya Facebook page shows a huge plume of smoke filling the air above the market as hundreds of fireworks shoot into the sky around it.

Metro Tacubaya - Me acaban de mandar este video, me dicen... | Facebook

The horrific incident left 29 people dead and 72 injured, many of those with severe burn injuries, according to Mexico State health officials.

A fireworks market in Mexico was destroyed by an explosion
(AP)

The market is integral to the economy of the town and many residents rely on it for their livelihood. Some looked on as emergency services worked to extinguish the resulting blaze and the market was reduced to rubble and ash.

The initial cause of the explosion is not yet known.