Heading into the summer break on the back of Lewis Hamilton's victory in Hungary, both the Briton and his Brackley-based team were in firm contention for the drivers' and constructors' championships.
Since the resumption of the campaign last month, Vettel and Red Bull have won the last three grands prix to leave their rivals trailing in their wake.
Hamilton, in particular, has claimed just 27 points from the races in Belgium, Italy and Singapore compared to Vettel's 75 to leave him 96 adrift of the 26-year-old German.
As for Mercedes themselves, they are 110 points behind Red Bull and would now appear to be battling Ferrari for second in the standings.
Despite such grim-reading statistics and Red Bull's advantage, Wolff said: "That dominance is something we are aiming to achieve over the next few years.
"We are looking forward so there is no reason to be depressed because the step we have made in the last 12 months is something we should be proud of.
"If you look at the race, immediately afterwards we were disappointed to finish third and fourth, but then you return to your hotel and say 'Well, that was fine'.
"Obviously, we are all here to win the world championship one day, and it's good we have raised the bar.
"Equally it's dangerous to do so because the level of satisfaction is much more difficult to achieve."
With Vettel in such a dominant mood, notably winning the Singapore Grand Prix by 32 seconds from Ferrari's Fernando Alonso - the largest margin this season - Wolff believes the German could easily go on to win the last six races.
Part of the reason is that with the major change in regulations for next year, development this season has now flatlined as teams plough their resources into the development of the 2014 car.
Asked whether he feared a clean sweep of the last six races by Red Bull and Vettel, Wolff replied: "Yes.
"In Singapore, the kind of performance he showed by going two seconds per lap faster was absolutely stunning, and if they don't have any DNFs...
"I don't know if he will have a clean sweep, but if anybody deserves the world championship, then it's him."