For the second year in a row Northern Ireland have fallen short of Milk Cup glory at the final hurdle.
Steve Beaglehole's boys pushed Denmark all the way in last night's final, but were unable to recover from conceding an early Mark Gundelach goal as the Danes ran out 1-0 winners.
Denmark coach - and former Celtic midfielder - Morten Wieghorst said: "I'm delighted for the boys, they are a group who were only brought together 10 days ago.
"This is a big achievement because it is the first time we've won it, so I am delighted with the result.
"It is a tough schedule this week, we saw some tired legs out there, but they have made history. A few of the boys have surprised me and some of them aren't far away at all."
Denmark looked strong and composed when they drew 1-1 with Northern Ireland in the first meeting between the sides on Monday night.
Northern Ireland worked them all the way at the Ballymena Showgrounds last night, but just came up short.
It had been Beaglehole's boys who were brighter in the opening stages. A James Knowles corner found its way to Lee Toland and his dipping effort from just outside the box was turned away well by goalkeeper David Jensen
Denmark opened the scoring after 11 minutes with their first real foray into the Northern Ireland penalty area, coming through a piece of good fortune and a crisp finish from Mark Gundelach.
The broke kindly into the midfielder's path off Casper Sloth's right boot and Gundelach produced a powerful drive across Wayne Drummond and into the bottom left hand corner of the net.
Liam McAlinden came within a whisker of drawing the sides level five minutes later.
Matthew Ball, who scored against Denmark and Georgia earlier in the week, slipped an inviting pass into the path of McAlinden, who cut the ball just inches wide of Jensen's far post.
Caolan Lavery then brought a good save from Jensen as Beaglehole's side continued to look the more threatening.
Drummond, however, kept his side in the game eight minutes before the break, preventing Gundelach from doubling his and Denmark's tally.
Northern Ireland boss Beaglehole made a brave move with four changes at the break in an attempt to find a way back into the game and it was one of those substitutes, Neil Dougan, who picked up McAlinden's blocked slot and brought a point blank save from Jensen in the Denmark goal.
Another sub Andrew Mitchell glanced a header just wide as the home side continued to rack up the half chances, but were unable to carve a genuine opportunity for themselves.
With eight minutes left Michael McLellan flicked on a cross from the left and fell into the path of Ryan McLaughlin, but the Liverpool youngster struck his shot over the bar from a tight angle.
McLellan's night was to end five minutes from time when he reacted off the ball to shove Soren Henriksen to the ground.
It was 10-men apiece four minutes later when Jonas Knudsen picked up his second yellow card of the game for a foul on Dougan, as the midfielder sprinted down the flank, but Denmark comfortable held out to win.
Elsewhere in the section, last year's winners USA secured third place with a 2-1 win over Georgia at the Riada Stadium.
Taking home the wooden spoon were Israel who lost out on penalties to Mexico.