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"a decline in demand" is a correct and usable part of a sentence in written English.
You can use it when expressing that the amount of people or organizations wanting a product or service has decreased. For example, "Due to the difficult economic situation, there has been a decline in demand for luxury cars."
Exact(57)
There has been a decline in demand for knowledge-intensive workers requiring a degree since 2000.
Construction was the only sector where a decline in demand was reported.
Law firms have seen a decline in demand for legal services since the financial crisis.
This is happening at a time when economies are slowing, which means a decline in demand for fuel.
Federal requirements for the quantity of ethanol produced in 2008 have already been met, leading to a decline in demand.
The problem is a boom in supply (that is, vets) and a decline in demand (namely, veterinary services).
The August orders were held back by a decline in demand for military aircraft and other military goods.
Weyerhaeuser has been closing plants to cope with a decline in demand for paper used in boxes, magazines and books.
The convention business has been plagued in recent years by a nationwide abundance of exhibition space, a decline in demand and fierce competition among cities.
The authors of the report said that "investment activity will suffer" from the "breakdown" in lending and a decline in demand.
The Xerox Corporation said fourth-quarter profit shrank to nearly nothing, hurt by reorganization costs and a decline in demand from Russia.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com