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The five-time world champions topped Group A but came crashing down to earth against eventual winners Germany, capitulating to a 7-1 defeat in the semi-finals.
Brazil's woes were compounded in the third-place play-off, easily beaten 3-0 by the Netherlands as the host nation's campaign ended in disappointing fashion.
Article continues below"I think Brazilian football is behind. It's behind Germany and Spain," the 22-year-old said.
"We've slipped behind and we have to be man enough to admit it."
Brazil's failure came at a cost, with coach Luiz Felipe Scolari relieved of his duties but Neymar refused to blame the 65-year-old.
"I had a leader (who was) one of the best Brazilians coaches I've had," he added.
"There was no particular mistake made by the Selecao. I am not someone who understands a huge amount about tactics."
