New Zealand coach Danny Hay said his side were "disappointed, devastated and heartbroken" but he remained proud of their efforts.
"It was always going to be a really tough assignment," Hay said.
"But there was some real belief that if we stayed organised, and if the boys worked extremely hard, we would get an opportunity."
Brazil had 69 per cent of possession and had 25 shots to New Zealand's one but created few clearcut scoring opportunities. The five or so times Brazil broke through, Woud saved well to keep his side in the game.
New Zealand were also denied what looked an obvious penalty around the half-hour mark when Connor Probert was taken down.
"I thought we were hard done by not to get a penalty in the first half," Hay said.
"Then obviously [we] got that one in the 65th minute. To miss it was tough but then to concede like we did to a penalty in the last second of the game was difficult."
Hay made mention of the work ethic and dedication of the young side to make it to the round of 16 and come so close to defeating Brazil.
"I can only say that I'm so proud of this group of players. They've really come together and shown a huge amount of character."
If New Zealand had achieved the win, it would have been the first for a men's team against Brazil.
The New Zealand under-20s drew 0-0 with Brazil last year in China, the closest result a national men's side has accomplished.
The Football Ferns are the only Kiwi team to defeat the South American giants, beating them in Switzerland in 2013.
