The Bianconeri did not make it out of their group after being beaten 1-0 by Galatasaray, and Lippi has admitted that their performances this season have not been good enough.
"One must admit that Juventus have been a huge disappointment. Like [Antonio] Conte already said, they did not fail to qualify due to the match in Istanbul, but because of their poor performances in the first two games," he told La Gazzetta dello Sport.
"Juventus are worthy of at least a quarter-final spot rather than playing in the Europa League. I know a lot of their players and I know how angry they will be now. The Juve players will feel they are better than Galatasaray and they are right.
"Juventus' exit is a big failure, but I'm sure they will be challengers again in Europe within a few years."
Juventus will compete in the Europa League, when the competition resumes in the New Year.