The most common and most likely answer to this crossword clue is the 7 letter word ATROPHY
I've seen this crossword clue in The Daily Telegraph
A
T
R
O
P
H
Y
More clues leading to the result ATROPHY
Buddy explains!

The straight part
We know that "Waste" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case waste = atrophy.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does ATROPHY mean?
ATROPHY noun- A reduction in the functionality of an organ caused by disease, injury or lack of use.
- To wither or waste away.
- To cause to waste away or become abortive; to starve or weaken.