Something you make with your own hands, especially an ornament or decoration, is a handicraft. You might buy some local handicrafts on your trip to Mexico, like woven bags or handmade toys, as gifts for your family.
Things that are made with machines or on a large scale aren’t considered handicrafts. Instead, items made by artisans like pottery, handwoven blankets, handmade jewelry, and quilts stitched by hand are all examples of handicrafts. The word comes from the Old English handcræft, “skill of the hand,” and was probably modeled after handiwork.