Eden Sessions said those who had bought tickets would be contacted directly to be fully refunded against the original payment card used.
The Cornwall concert was due to be the first of a series across the UK and Europe, with dates in Glasgow, Woodstock and Cork also included.
Young has won a string of accolades across his six-decade career, including two Grammys and nine Juno Awards.
Young is best known for songs including Cinnamon Girl, Like A Hurricane and Rockin’ In The Free World, and last year he headlined at Glastonbury and took to the stage at BST Hyde Park.
On Tuesday, singer-songwriter Ben Howard, who was raised in Devon and studied in Falmouth, was announced as one of the headline acts for Eden Sessions.