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La Ciudadela (or The Ciudadela) has a fantastic variety of Mexican crafts. This 16,000 square metre market has over 200 stalls selling a huge range of goods, including silverware, textiles, jewellery, and clothes. It's a great place to buy gifts and souvenirs, as things like Mexican wrestling masks, hand-painted pottery, and sombreros are available at many stalls. The atmosphere in the market is relaxing and you don't feel hassled or pressured into buying anything. Bargaining, however, is both accepted and expected here, as many items have no fixed price, shopkeepers expect you to ask the price and bargain with them.
There is a large restaurant in the middle of the market, where you can break your day's shopping with a burrito or some quesadillas. You'll probably want to spend at least half a day here to really appreciate the vastness of this market, and the variety of different products on offer.