The pattern was established early as the taller and quicker Alvarez pressed forward, with Berridge circling around slowly, keeping out of distance until looking to come in with signature heavy blows.
The pace quickened in the third round with both men tying up and rabbit punching the body, with Alvarez still quick and on-point with his counter punching.
A very good 1-2 combination stung Berridge in the fourth round, making him back away with his right eye beginning to swell up.
Berridge lifted his aggression in the fifth, attacking the body and landing a hard hook, but Alvarez defended well and kept the jab out there to score points.
The punishment was taking its toll as Berridge could not connect with the uppercut, Alvarez waiting in the corner and counter punching well as the Kiwi looked to get in low and find the opening for a hook, usually hitting little but arms and glove.
Entering the final rounds, and the tired Berridge was just looking to stay there with his top ranked opponent, who got the better of the exchanges as Berridge drove in low and tied him up to make it through to the bell.
The judges scorecards had the fight for Alvarez by two margins of 98-92 and one 99-90.
Nonetheless, it had been a brave effort for Berridge to face such a quality fighter with no preparation time, having scored with left hands where he could and absorbing a lot of punishment to the body in going the distance.
"Ten rounds with the world No4 on five days notice - may have lost but proud of what we as a team achieved," Berridge said on Facebook.
"Massive thanks to my wife Renee, my manager Vasco [Kovacevic] and trainer Cleve [Langdon]."
Berridge returns to New Zealand to face Ben Vui on August 13, before his grudge match with Adrian Taihia on October 28.