Ultrafilter Medical Ltd, based in Ross-on-Wye, was due to have a stall in Castle Square on New Year's Eve.
The firm says it wants to help communities as the Omicron variant of Covid is rapidly spreading.
The giveaway will still be happening in the near future, with details yet to be confirmed.
A representative for the firm said: "This will be part of a one million face mask giveaway.
"We gave out 100,000 in Ross-on-Wye on Christmas Eve. That was such a success that preparations are being made to make it an equal success in Ludlow.
"Watch this space."