This paper investigates end-user expectations regarding building thermal insulation materials through a multi-stakeholder survey of 115 respondents across 12 European countries, complemented by statistical analysis and validation with industry manufacturers. The research methodology comprised a literature review of end-user preferences, conceptual model development, survey design, statistical analysis using the Kruskal-Wallis nonparametric test, and a two-phase manufacturer validation. Survey results demonstrate that end-users maintain a functional approach to insulation material selection, prioritizing specifications that deliver tangible, measurable benefits, with a strong emphasis on health and safety considerations, thermal performance, durability, moisture resistance and energy efficiency and relatively low importance assigned to aesthetics and sustainability credentials. The end-user behavior hierarchy ranks technical factors as the most important, followed by economic, environmental, and, lastly, social considerations, a ranking confirmed independently by industry manufacturers. Critically, a sustainability gap is identified: current preferences for environmental specifications remain substantially below levels implied by EU policy goals, yet higher-knowledge respondents show significantly greater appreciation for sustainability criteria, suggesting that education and regulation will progressively reshape market priorities. The manufacturers’ validation identified durability demonstration, moisture resistance, cost competitiveness, and communication as critical development challenges for innovative materials, defining the frontier where material innovation must meet market requirements to enable widespread adoption of sustainable construction solutions.