Mr Hutchinson had been one of two prominent Republicans in the race most vocal about their concerns stemming from the candidacy of Donald Trump, who set a record with his own blowout performance in the caucuses, taking 51 per cent of the vote.
In a statement, he acknowledged that his message of opposition against the frontrunner had not gone over well among Republican voters.
"I am suspending my campaign for President and driving back to Arkansas. My message of being a principled Republican with experience and telling the truth about the current front-runner did not sell in Iowa,” said Mr Hutchinson.
His eventual vote total was less than that of all other candidates running, despite being a former elected himself. He had previously warned that his party, the GOP, would “pay a price for decades” if it made the wrong choice in 2024 — presumably referring to nominating Mr Trump again.
Three competitive GOP candidates remain in the race: Donald Trump, Nikki Haley and Ron DeSantis. Mr Trump remains the wide-and-away favourite for the nomination after his huge victory on Monday, and the eyes of the political class are now turning to New Hampshire, where he faces a surging Ms Haley.
Mr DeSantis, though in second place, is thought to be heading in to unfriendly territory after last night.
Arkansas voters, though they have not yet cast ballots in a primary, have for all intents and purposes already given their judgement in relation to Mr Hutchinson’s warnings about Mr Trump. The state’s newly-elected governor, Sarah Huckabee Sanders, took office in January of last year after previously serving as Donald Trump’s second White House press secretary.