Five children are believed to be among those who have been killed in the explosion.
The blast happened on Monday in a rural part of the central Puebla state, Diodoro Carrasco.
Troops from the Mexican armed forces rushed to the scene to help battle the blaze.
The Puebla government issued a statement saying: "A group of people lived in the house where the pyrotechnic material was stored for use in the festivities.
"A firework launched by someone outside (the house) fell on top of the fireworks, causing the explosion that knocked down the home."
The explosion comes just four months after more than 30 people were killed and dozens more injured when a massive fireworks explosion ripped through a busy market in Mexico.
The blast in the San Pablito market in the city of Tultepec injured around 70 people leaving piles twisted and charred debris.
The Red Cross said it had sent more than 30 ambulances and dozens of paramedics to the scene to treat the wounded.
Tultepec, north of Mexico City, is famous for its fireworks industry, and hosts the annual National Pyrotechnic Festival.
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