Joachim Low's men won 1-0 at Wembley thanks to Per Mertesacker's towering header, adding to England's 2-0 setback against Chile on Friday.
Hodgson told ITV1: "I thought it was a harsh defeat but we needed better quality.
"The effort, the work rate and desire, I can't fault at all. But in the time we had the ball in the German half, we weren't as efficient as the Germans were when they had the ball in our half.
"The quality of our passing and shooting was not as good as the Germans and we paid the price for set-pieces. We knew set-pieces would be a danger, they had some big players and we were a small team tonight [Tuesday]."
Reflecting on the two games, though, he added: "We've used a lot of players and I think it's been a positive exercise.
"We've learnt a lot, positively on some occasions and on others negatively, but I'm rather disappointed that people have come to watch us in these two games and we've not been able to send them home with a good result."