The decision was taken amid safety fears over the close proximity of the county show to major road junctions.
Red 10 Squadron Leader Mike Ling said the decision was not linked to the Shoreham Airshow vintage jet crash, which killed 11 people last year.
Suffolk Show organisers expressed disappointment over the move, but agreed safety was a priority.
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Mr Ling said: "Even before the tragic events at Shoreham there's always a very in-depth site survey of each display site to make sure it's suitable.
"It just so happens that this site isn't suitable, and people have tried to put two and two together and come out with the fact that it's Shoreham that's made this happen."
He said they had to take into account built-up areas including the south-east corner of Ipswich, the major junction of the A12/A14, and they could not afford to take any risks.
Suffolk Show director Bill Baker said he was disappointed, but was grateful to the Red Arrows for attempting to bring the aerial display team to the county.
He said: "If I'm disappointed about anything, it's that the news leaked out and this wasn't all behind closed doors.
"Safety absolutely has to be paramount and I fully respect the decision that's been taken."
The Red Arrows team will not put on a display at the Suffolk Show this year, after the area was deemed "unsuitable".