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"waning demand for" is correct and usable in written English
You can use it to describe a situation in which the demand for something is decreasing or declining over time. For example: "With product updates occurring more frequently, the waning demand for the previous version forced the company to reduce production."
Exact(26)
Hugo Boss is cutting its prices in Asia in response to waning demand for luxury goods.
But by the end of the century, the waning demand for skilled artisans had made it impossible to hang on.
Simon Wells, chief UK economist at HSBC, highlighted waning demand for intermediate goods, such as components and unfinished products.
Ciena, whose customers include Sprint and WorldCom, blamed waning demand for equipment that moves information through long-distance optical networks.
After suffering crippling debt, intense competition and waning demand for phone services, Velocita sought Chapter 11 bankruptcy protection in May.
Those factors, and a waning demand for brined goatskin, leave the city as the sole occupant under the bridge.
Similar(34)
In December, the company credited waning demand deteriorating for its office, home and cleaning products, despite its strong portfolio of consumer staples brands that include Paper Mate, Rubbermaid and Graco.
Hence, OPEC's current focus on expectations of waning demand this spring, a perennial justification for cutting output.
But for exporters, waning demand is another blow on top of a stronger pound, that makes UK goods more expensive to overseas buyers.
The company is preparing a buffer for the blow from waning demand, cutting 8,200 jobs from its work force.
But now waning demand is causing pain.
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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