Hoffenheim forward Volland joined defender Shkodran Mustafi and left back Marcel Schmelzer, still nursing a knee injury, as the three players left out of the final squad after being included in a provisional selection for a training camp in Italy.
"Obviously Shkodran, Marcel and Kevin are very disappointed and I an understand that because they had every right to hope they would be in Brazil," Loew told reporters.
"All three are players who still have the chance to take part in several big tournaments in their careers."
Volland's exclusion came as a surprise given the stocky striker's physical strength and all-round play were seen as a good alternative to veteran forward Miroslav Klose, who will be 36 next week.
Attacking midfielder Mario Goetze played as a striker in the 2-2 warmup draw against Cameroon on Sunday and that position can also be filled by Thomas Mueller, on target in that game.
Loew included Borussia Dortmund's Erik Durm, who can play as left back, in the final squad after he won praise following his first cap on Sunday while also sticking with youngsters Julian Draxler and Matthias Ginter as well as midfielder Chrstioph Kramer, who won his first two caps in the past weeks.
Playmaker Bastian Schweinsteiger, also working on his fitness following several injuries this season, made the squad in a talented midfield that also includes Marco Reus, Mesut Ozil, Lukas Podolski and Toni Kroos.
"I am 100 percent convinced of all the players' abilities. We have the right mix of many young and hugely talented players and players with a lot of tournament experience who know what it is all about," Loew said.
Little-known Mustafi of Sampdoria, a surprise call-up in the provisional squad, made way for a more experienced backline, with Jerome Boateng, Mats Hummels, Benedikt Hoewedes, Per Mertesacker and Kevin Grosskreutz.
Borussia Dortmund's Schmelzer paid the price for missing too much training in their Italian training camp due to his injury.
Germany, who won the World Cup as West Germany on three occasions, hope to clinch their first silverware since Euro 96.
"It is a balanced squad and with two players available for every position," Loew said.
"Our players have character and the team has character. We will travel with this squad to Brazil with a lot of confidence because we have set big targets."
Defenders: Jerome Boateng (Bayern Munich), Kevin Grosskreutz (Borussia Dortmund), Erik Durm (Borussia Dortmund), Benedikt Hoewedes (Schalke 04), Mats Hummels (Borussia Dortmund), Per Mertesacker (Arsenal), Philipp Lahm (Bayern Munich)
Midfielders: Julian Draxler (Schalke 04), Matthias Ginter (Freiburg), Mario Goetze (Bayern Munich), Christoph Kramer (Borussia Moenchengladbach), Sami Khedira (Real Madrid), Toni Kroos (Bayern Munich), Thomas Mueller (Bayern Munich), Mesut Ozil (Arsenal), Lukas Podolski (Arsenal), Marco Reus (Borussia Dortmund), Andre Schuerrle (Chelsea), Bastian Schweinsteiger (Bayern Munich)
Forwards: Miroslav Klose (Lazio)
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- Borussia Dortmund
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- Bayern Munich