During the 1980s, its hit products Merries diapers, Attack detergent, Biore daily skincare and Biore U daily body care, Curel (1986) and Sofina cosmetics were launched. During this time, Kao engaged in several joint ventures (haircare in Europe, Nivea in Japan with Beiersdorf), and acquisitions (Andrew Jergens Company in 1988, Goldwell AG in 1989) in North America and Europe. During this period, Kao also expanded to the manufacture of floppy disks.
During the 1990s and 2000s, the company expanded into China and Vietnam - countries that, during that time, were opening up their economies to the rest of the world. Also, the company expanded into food products with Econa and Healthya. It also continued to acquire businesses (John Frieda in 2002, Molton Brown in 2005, and Kanebo Cosmetics in 2006).
In September 2009 Kao recalled its Econa cooking oil products after it was revealed in the media that one of its ingredients becomes carcinogenic after digestion. According to the media reports, Econa contained from 10 to 182 times the amount of glycidol fatty acid esters found in regular cooking oils. Kao also removed the tokuho, or government "healthy food" designation from the product's label. Problems with the product had first been revealed in 2002, but the company did not take action until 2009, for unexplained reasons.